Households’ median perception of current inflation declined by 10 basis points (one bps is 0.01 percent)) to 8.1 per cent, when compared to the July 2024 round of the survey; their inflation expectations for three months and one year ahead periods moderated by 20 and 10 bps, respectively.
The survey was conducted during September 1-10, 2024, in 19 major cities, with 6,076 valid responses, where female participation was 52.6 per cent.
The central bank’s bi-monthly survey provides directional information on near-term inflationary pressures as expected by respondents and may reflect their own consumption patterns. Hence, survey results reflect respondents’ views, which are not necessarily shared by the Reserve Bank.
The findings of the survey assume significance as the recent spikes inflation is largely driven by food inflation which impacts the household the most as food comprises a big chunk of their consumption basket.
Though consumer price inflation eased in July and August, food inflation experienced a certain degree of correction during these two months. Considerable divergence, however, was observed within the food sub-groups according to the Reserve Bank of India governor Shaktikanata Das’s statement on Wednesday. The central bank’s survey Price and inflationary pressures eased across all the product groups. For both short term and one year ahead periods, the shares of respondents anticipating rise in both general prices and inflation have reduced compared to the previous survey round. Senior citizens and retired people still expect inflation to be in double digits across all time horizons. While the younger generation under 25 of years of age expect the price rise to be the least among all age groups.
Significantly female respondents had marginally lower inflation assessment and expectations when compared to their male counterparts.