'Future inflation higher than that of the present rate'

The Reserve Bank of India's (RBI) inflation expectation survey of households shows future inflation expectations remained higher than current inflation perceptions. Double-digit inflation expectations persisted throughout the financial year on an average.

However, the percentage of the respondents perceiving current inflation and expecting future inflation in double digits has declined over the quarters, noted the RBI's bulletin released for the month of June on Monday.

In all the four quarterly rounds of the survey during 2012-2013, about 98 per cent respondents expected an increase in general prices for three-month ahead and one-year ahead periods. About 70 per cent of the respondents expected general price increase at more than the current rate in both the periods till the third quarter of 2012-13. However, the proportion decreased in the fourth quarter of 2012-13, showed the survey. The percentage of respondents expecting general price increase at 'more than the current rate' in both the periods decreased from 73.3 per cent in quarter one of 2012-13 to 59.3 per cent in quarter fourth of 2012-13.