By Donavan Lim
Further price increases are expected by Singapore households.
According to the Singapore Management University-MasterCard survey on inflation expectation Index, Singapore’s expectations of price increase edged higher in June from March
The SKBI-MasterCard Singapore Index of Inflation Expectations (SInDEx) was launched in January 2012. It was developed by Dr Aurobindo Ghosh and Professor Jun Yu from SMU Sim Kee Boon Institute for Financial Economics (SKBI), in collaboration with MasterCard.
SInDEx is derived from an online survey designed to help researchers understand the behaviour and sentiments of decision makers in Singapore.
Households expect prices to rise by 4.45 per cent over the next year, as compared with a forecasted 4.13 per cent in March.
Latest inflation figures in June indicated that inflation rose 5.3 per cent year-on-year well above historical levels of 2-3 per cent.
Prices rose 5.0 per cent in May.
On Wednesday, the Monetary Authority of Singapore had narrowed its 2012 inflation forecast to 4-4.5 percent from 3.5 to 4.5 percent, but expects the pace of increase to slow in the second half.