Most Singapore households expect inflation to rise over next year: survey

Most Singapore households anticipate inflation to increase over the upcoming year, according to a survey conducted by DBS and Singapore Management University (SMU). The headline inflation expectation for the next 12 months remained steady at 3.4 percent in September, unchanged from the previous quarter. However, 87.1 percent of the 510 respondents surveyed expect inflation to rise, down slightly from 87.7 percent in June.

Only 3.9 percent expect inflation to decrease, compared to 4.3 percent in June. Despite these concerns, headline inflation expectations for the year ahead remained unchanged at 3.4 percent in September, matching the June reading. Core inflation expectations, which exclude accommodation and private transportation costs, rose to 3.6 percent from 3.4 percent in June.

Geopolitical uncertainties and trade policy concerns, including tariffs, were cited as the primary reasons for the anticipated inflation increase by 59 percent of respondents. Supply chain disruptions were mentioned by 11.3 percent of respondents. DBS chief economist Taimur Baig noted that despite price pressures from various sources, Singapore's inflation has remained moderate this year.