NEW DELHI: Reserve Bank of India’s (RBI’s) forward-looking surveys in January 2025 said the Indian households expect moderation in inflation for the near term while consumer confidence declined marginally due to somewhat tempered sentiments.
The households’ median perception of current inflation declined marginally by 10 basis points (bps) to 8.3%, as compared to 8.4% of the previous survey round held in November 2024.
Median inflation expectation for the three months horizon increased by 20 bps to 9.3%. It inched up by 10 bps to 10.2% for one year ahead.
According to the survey report, the inflation expectations showed an upward trajectory for three months and one-year ahead period.
Reflecting confidence on spending, households’ assessment on one-year ahead outlook remained firmly in the optimistic territory, it added.
There was an increase in share of households anticipating rise in general prices and inflation for both near term as well as the coming year. They expect somewhat higher inflationary pressures across product groups, especially for food products and housing, for both the time horizons.
For one year ahead, the price expectation of households is closely aligned with food prices and housing-related expenses, the survey said.
According to the survey, the consumer confidence survey showed subdued sentiments on spending for both essential and non-essential outlays vis-à-vis the November 2024 round.
Despite some moderations, the sentiments about future spending remained strong, it added.
Agencies