Monday, Dec 05, 2022

RBI survey: Household inflation expectation further comes down in December

The current inflation level as perceived by households fell to 6.5 per cent in December, compared with 7.3 per cent in the previous month, the survey said.

RBI survey, reserve bank of india, household inflation, household infaltion expectation, consumer price inflation, indian express news, business news The current inflation level as perceived by households fell to 6.5 per cent in December, compared with 7.3 per cent in the previous month, the survey said.

Household inflation expectations fell for the second straight month in December, according to a survey by the Reserve Bank of India (RBI) released on Wednesday.

The current inflation level as perceived by households fell to 6.5 per cent in December, compared with 7.3 per cent in the previous month, the survey said. The actual consumer price inflation in December was 3.41 per cent. More importantly, households also felt that the general level of price increases in three-month and one-year ahead periods will fall.

Watch What Else Is making News

The median household felt that the three-month ahead inflation rate will be 7.3 per cent in the December survey, compared with 8.2 per cent a month earlier. Similarly, the median one-year ahead inflation rate projection fell to 8.3 per cent in December, against 10.1 per cent in November.

“The proportion of respondents expecting the general level of prices to increase three months ahead and one year ahead declined sharply in the December 2016 round as compared with both the September and November 2016 rounds and the shift was towards decline in prices. This was observed across all product groups, but was most prominent in food products and housing,” said the RBI.

Subscriber Only Stories
JK Cement’s SPSU Udaipur Launches ‘Golden Batch 2022’ In Collaboration Wi...Premium
Appendicitis in Children- A new lifestyle disorderPremium
Using evidence will create strong foundations for the future of education...Premium
Re-Defining The Tradition In Folk Art: An Art Educator’s PerspectivePremium

The RBI survey was conducted in 18 cities and obtained responses from 5,162 urban households in various occupational categories.

Households in Bengaluru were the most optimistic, forecasting 5.3 per cent median three-month ahead inflation expectation, followed by Lucknow households at 5.5 per cent and Delhi at 5.6 per cent. The cities which were the most pessimistic included Guwahati (13.8 per cent) Ahmedabad (10.1 per cent), Mumbai (8.6 per cent) and Jaipur (8.6 per cent).

Household inflation expectations had remained high for the past four years because of constantly high CPI inflation which crossed 10 per cent during 2011 to 2013. It is partly to bring down inflation expectation that the RBI made CPI inflation its policy anchor.

First published on: 09-02-2017 at 02:33:27 am
Next Story

Patiala battle not over yet – Captain fires at General: Embarrassing behaviour for an ex-Army chief

Latest Comment
Post Comment
Read Comments
Advertisement
Advertisement
Advertisement
close