 "Indian households expect inflation to rise further, says RBI survey")
Indian households expect inflation to rise further while consumer confidence took a knock due to weaker sentiments, according to RBI’s forward-looking surveys in November.
Households’ median perception of current inflation rose by 30 basis points (bps) to 8.4 per cent, as compared 8.1 per cent of the previous survey round held in September 2024.
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.
RBI’s latest round of the survey of households’ inflation expectations was conducted during November 2-11, 2024, covering 6,091 respondents in 19 major cities. Female respondents accounted for 52.9 per cent of this sample, RBI said in a statement.
The survey showed that a somewhat larger share of respondents expects the year-ahead price and inflation to increase in November survey compared to September 2024 round.
The increase was mainly due to higher pressures from food items and housing-related expenses.
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Meanwhile, the consumer confidence survey showed that even as the respondents’ sentiments towards current earning moderated marginally, they displayed high optimism on future income. It was consistent with their opinion on employment conditions.
Households anticipated higher spending over a one-year horizon on the back of higher essential as well as non-essential spending. They displayed somewhat higher optimism about one-year ahead outlook for major economic parameters, except prices. The future expectations index (FEI) improved to 121.9 in the latest survey from 121.4 in September, it added.