RBI surveys

RBI releases inflation expectations survey (No. 42) results. On all categories of goods and esp. in services, households expect higher inflation both in 3 months and in 12 months (Table 2). Yet, the median inflation expectation in 3 and 12 months is slightly lower than in the previous round (Table 4)! Of course, mean inflation expectation for both these horizons has gone up from 10.7% to 10.9% in the next three months and from 11.1% to 11.2% in 12 months. Households also reckon that the current inflation rate is 11.0% (mean) and 10.3% (median). Very sticky and very high. India has a big inflation problem.

The related consumer confidence survey among more than 5000 respondents in six major cities also corroborates the evidence on inflation being a high concern. Check out Table 8.

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