An　inner　product　encryption　(IPE)　scheme　is　a　special　type　of　functional　encryption　where　the　decryption　algorithm,　given　a　cipher-text　related　to　a　vector　x　and　a　secret　key　to　a　vector　y,　computes　the　inner　product　＜　x,y　＞.　A　function-hiding　IPE　scheme　requires　that　the　secret　key　reveals　no　unnecessary　information　on　the　vector　y　besides　the　privacy　of　the　vector　x.　In　this　paper,　we　construct　a　function-hiding　IPE　scheme　using　the　asymmetric　bilinear　pairing　group　setting　of　prime　order.　Compared　with　the　existing　similar　schemes,　our　construction　both　reduces　necessary　storage　complexity　and　computational　complexity　by　a　factor　2　or　more　and　achieves　simulation-based　security,　which　is　much　stronger　than　indistinguishability-based　security,　under　the　External　Decisional　Linear　assumption　in　the　standard　model.