RBI survey says larger share of respondents expects year ahead inflation to increase

Reserve Bank of India (RBI) released the results of November 2024 round of its bi-monthly inflation expectations survey of households (IESH). The survey was conducted during November 2-11, 2024, in 19 major cities, with 6,091 valid responses, where female participation was 52.9 per cent. Households' median perception of current inflation rose by 30 basis points (bps) to 8.4 per cent, as compared to the previous survey round.

Median inflation expectation for three months horizon moderated marginally by 10 bps to 9.1 per cent, whereas it inched up by 10 bps to 10.1 per cent for one year ahead period. The share of households anticipating higher inflation for the three months ahead was a shade lower vis-?-vis the previous survey round due to anticipation of lower pressures from non-food items and cost of services.

Compared to September 2024 round of the survey, somewhat larger share of respondents expects the year ahead price and inflation to increase, mainly due to higher pressures from food items and housing related expenses. One year ahead price expectation of households is closely aligned with food prices and housing related expenses.

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