Marginal decline in price-rise expectations: RBI survey

The Reserve Bank of India's inflation expectation survey saw a marginal decline in the number of households expecting prices to rise by more than the present rate in the next three months and a year.

However, more people have started to expect prices to continue to rise at the present pace.

"The survey shows that self-employed, retired persons and daily workers have comparatively higher inflation expectations for three month ahead period based on median inflation rates," RBI said in a statement.

The households expected inflation to be at 10.5 per cent in the next one year, with a standard deviation of 4.3 per cent.

In a separate survey, the central bank said more people were expecting an increase in future income (one-year) with net response improving by 2 percentage points against a September 2015 survey.

"The one-year ahead outlook on economic conditions has been consistently better than the positive perceptions on current economic conditions as compared to a year ago. Continuing this trend, such perceptions of the respondents in December 2015 round of the Survey indicated marginal improvement in the general economic situation, as measured by net response, both for the current as also for a-year ahead period," RBI's Consumer Confidence Survey for December 2015 said.