NewKerala.com

Key Points

The Reserve Bank of India's latest household survey reveals a subtle but promising shift in inflation perceptions across India. Respondents from 19 major cities indicated a marginal decline in current and future inflation expectations, with the median perception dropping to 7.7%. Food and housing sectors continue to drive price rise concerns, though expectations are moderating compared to previous surveys. The study highlights interesting demographic variations, with older respondents perceiving higher inflation compared to younger groups.

Key Points: RBI Survey Reveals Softening Household Inflation Expectations

  • Median inflation perception drops to 7.7% in May
  • One-year inflation expectation declines to 9.5%
  • Food and housing sectors show price rise expectations
  • Regional variations in inflation perception exist
2 min read

Households feel inflation is easing in short and medium term: RBI Survey

RBI's latest survey shows households expect easing inflation in short and medium term across key product categories

"Households feel price pressures are easing - RBI Inflation Expectations Survey"

New Delhi, June 7

Indian households' perception of current inflation in the country fell slightly, according to the Reserve Bank of India (RBI).

As per the RBI's Households' Inflation Expectations Survey, the median inflation perception declined by 10 basis points to 7.7 per cent in May, down from 7.8 per cent recorded in March 2025. The survey also highlighted that expectations for inflation over the next three months remained unchanged at 8.9 per cent, while the one-year-ahead expectation declined by 20 basis points to 9.5 per cent.

This indicates that households feel price pressures are easing, both in the short and medium term. Notably, fewer people now expect prices and inflation to rise compared to the last survey round.

The Reserve Bank of India released the findings of its bi-monthly "Inflation Expectations Survey of Households" for May 2025, which reflects a softening in the public's view on inflation. The survey was conducted between May 2 and May 11 across 19 major cities and received 6,079 valid responses.

The survey data showed that the easing of inflationary expectations was visible across key product groups such as food, non-food items, household durables, housing, and services. In particular, around 55 per cent of households now believe food prices will increase more than the current rate.

Among product categories, the expectation of a price rise in the next three months was highest for food products (82.8 per cent), followed by housing (78.3 per cent) and non-food items (75.3 per cent).

Looking one year ahead, 89.2 per cent of respondents expect a general rise in prices, although this number has moderated from previous rounds.

The survey also pointed out demographic and regional differences. Retired persons and people above 60 years continued to perceive higher inflation compared to younger age groups. City-wise, people in Jammu, Kolkata, and Mumbai reported the highest inflation perception, while respondents from Bengaluru and Ahmedabad perceived inflation to be lower.

Overall, the results suggested a marginal improvement in inflation sentiment among households, indicating greater confidence in the price situation.

The Reserve Bank clarified that this survey reflects individual expectations and consumption patterns and may not necessarily align with official inflation data or the RBI's views.

- ANI

Share this article:

Reader Comments

R
Rahul K.
Finally some good news! But I'm still paying ₹120 for a kg of tomatoes in Delhi. The survey says expectations are improving, but ground reality feels different. Hope the RBI takes action to bring actual prices down, not just perceptions.
P
Priya M.
As a homemaker, I can confirm prices are stabilizing slightly. Dal and atta prices have become more predictable. But housing costs in Bangalore are still crazy! 😅 The survey matches my experience - things aren't getting worse, but not much better either.
A
Amit S.
Interesting that retired folks feel inflation more. My father keeps complaining about medical costs and vegetable prices. Younger people like me may not notice because our salaries adjust faster. RBI should consider separate policies for senior citizens.
S
Sunita R.
The survey covers only 19 cities? What about rural India where most Indians live? Farmers are struggling with input costs while consumers pay high prices. There's a big gap in middle that needs policy attention. #RuralInflation
V
Vikram J.
Good to see RBI tracking public perception. But 8.9% expected inflation is still too high! We need to aim for 4-6% range like developed nations. Monetary policy must remain tight until actual prices match people's improved expectations.
N
Neha P.
Mumbai resident here - the survey is spot on about our city's high inflation perception! 😂 Between rent, transport and veggies, everything costs a bomb. But yes, the price rises have slowed down compared to last year. Baby steps towards better days! 🤞

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50