Households' inflation expectations for three months and one year ahead moderated

Reserve Bank of India (RBI) released the results of March 2024 round of its bi-monthly inflation expectations survey of households (IESH). Households inflation expectations for both three months and one year ahead moderated by 20 basis points (bps) each to 9.0 per cent and 9.8 per cent, respectively; their perception on current inflation, however, remained unchanged at 8.1 per cent. The share of households expecting overall prices and inflation to increase over the next three months and one year moderated for general prices as well as for most of the product groups, when compared to the previous survey round. Median inflation expectation was relatively low for respondents below 25 years in age among all age-groups; in occupation category, it was lower among financial sector employees. Households expectations on general price for one year horizon remained closely aligned with food prices and housing related expenses.

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