As per the Reserve Bank of India's bi-monthly survey on inflation expectations, a notable number of households anticipate higher inflation rates in the coming three months and one year. The survey, spanning 19 major cities, reveals expectations of price hikes across various product categories in the upcoming year.
Household projections align closely with anticipated inflation in food products and services over the next three months. Looking ahead to the year, this alignment is more evident in forecasts for food products and housing segments.
Interestingly, the survey notes a decline in households' perception of current inflation by 20 basis points to 8.2% in November. However, the median expectation for inflation remains steady at 9.1% for the coming three months, while it rose by 20 basis points to 10.1% for the one-year horizon in November 2023.
Conducted from November 2 to 11, the survey gathered responses from 6,036 urban households, with female respondents accounting for 50.1% of the sample.
Key Points:
1. The Reserve Bank of India's bi-monthly survey on inflation expectations revealed an increase in the number of households anticipating higher inflation in the coming three months and one year across 19 major cities in the country.
2. The survey indicates that households foresee price hikes and inflationary pressures in various product categories in the upcoming year, particularly in food products and housing segments.
3. Despite a decline in households' perception of current inflation to 8.2% in November, the median expectation for inflation over the next three months remained steady at 9.1%. However, for the one-year horizon, it rose by 20 basis points to reach 10.1% in November 2023.
4. The survey, conducted from November 2 to November 11, gathered responses from 6,036 urban households, with female respondents comprising 50.1% of the sample.
5. Aligning with the survey findings, expectations regarding inflation in the short and long term reveal a trend of increased anticipation among households, particularly in relation to food products and housing, indicating a broader concern about rising prices in these sectors.
(With Agency Inputs)
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