RBI’s Households’ Inflation Expectations - November 2016 - आरबीआय - Reserve Bank of India
RBI’s Households’ Inflation Expectations - November 2016
Households’ inflation expectations for three-month as well as one-year ahead period moved down in November 2016 as per the Inflation Expectations Survey of Households conducted by the Reserve Bank of India (RBI) in November 2016 (45B round). Conducted at regular intervals, the Inflation Expectations Survey of Households of the Reserve Bank provides useful directional information on near-term inflationary pressures and supplements other economic indicators. These expectations are formed by individuals based on their consumption basket and should not be treated as benchmark for official measure of inflation. The November 2016 round of the survey was conducted across 18 cities and covered 5,233 urban households from various categories (Table 1). Highlights: I. The proportion of respondents expecting general prices to rise by ‘more than current rate’ in three-month and one-year ahead declined sharply in November 2016 round. Similar sentiments were observed across all product groups (Table 2). II. Three-month and one-year ahead median inflation rates declined sharply by 130 basis points in this round compared to September 2016 round (Table 4 and Chart-1).
1 Besides the quarterly rounds of the survey, two additional rounds (May & November) were introduced in 2014 on a pilot basis to align the survey with bi-monthly monetary policy. As the surveys have now stabilized, the results are being placed in the public domain for the first time. The field work was carried out between October 22, 2016 and November 08, 2016. |