From Pip to Price Tags: A Tale of Inflation Expectations in Singapore

Regardless of where, inflation has corrosive implications on people’s lives.

In this episode, Professor Sumit chats to NTU’s Assistant Professor Chua Yeow Hwee about the “upgrading channel”, which tests if an individual’s inflation expectations are linked to the way they spend, i.e. the quality of products they buy.

Asst. Professor Yeow Hwee shares his findings from an interesting experiment based on the prices of Wall’s and Haagan Daz ice cream brands. He uses data from Nielsen’s Home Scan panel to corroborate the evidence that he found in his own survey data to tease out the quality versus price effect that could be on inflation itself.