household inflation Expectations for the three-month and one-year ahead periods rose 10 bps and 30 bps, respectively. However, the RBI said that the survey conducted after the reduction in excise duty petrol and diesel Inflation expectations were announced to fall by 190 bps and 90 bps, respectively, compared to the survey conducted before the tax cuts.
In the regular round of the survey, before the cut in excise duty on petrol and diesel, households’ three-month forward expectation and one-year ahead inflation expectation stood at 10.8 per cent and 11.1 per cent. However, in another round of the survey (May 24-28) after the excise duty cut, households’ three-month forward expectation and one-year ahead inflation expectation stood at 8.9 per cent and 10.1 per cent.
Households’ average inflation perception increased by 40 basis points (bps) for the current period as compared to the March 2022 round of the survey, while those for the three months and one year ahead increased by 10 bps and 30 bps, respectively . To survey the inflation expectation of households.
The survey was conducted from May 2 to 11, 2022 in 19 major cities. The results are based on responses from 6,062 urban households.
It added that most households expect normal prices and inflation to remain high over the three months and one year ahead horizon. Overall price and inflation expectations for the next one year were in line with cost of non-food products and services, while three-month ahead expectations were generally more aligned for food products and non-food items.
“In view of the reduction in the prices of petrol and diesel on May 21, 2022, a limited follow-up survey (hereinafter referred to as the ‘Detail Survey’) was conducted during May 24-28, 2022, covering nearly half of the was. Families that had responded in the regular survey rounds. Overall, 3,036 households gave their revised expectations of inflation (quantitative) in the extension survey,” RBI said.
In the extension survey round, inflation expectations for three months and one year ahead have declined by 190 bps and 90 bps, respectively, as compared to the regular round.
In the monetary policy statement, Shaktikanta Das also said that there are increasing signs of higher pass-through of input costs to selling prices. “The Monetary Policy Committee notes that inflation is likely to remain above the upper tolerance band of 6 per cent during the first three quarters of 2022-23.”
in retail inflation India It stood at an eight-year high of 7.79 per cent in April. RBI has revised its inflation forecast for 2022-23 to 6.7 per cent, from 5.7 per cent estimated earlier.
RBI Consumer Confidence Survey
RBI said consumer confidence is improving steadily since July 2021; Sentiments on key parameters such as employment and household income improved further in the latest round of the survey, though they remained in pessimistic territory.
“Despite a slight decrease in sentiment in the latest survey round, the one-year forward outlook of households remains in the area of development,” it said.
households estimated the increase in their current expenditure and expected it to increase further in the next one year; RBI said in the survey that they expected higher essential spending, while sentiment remained weak on non-essential spending.
The Consumer Confidence Survey captures the general economic situation, employment scenario, overall price position and current perceptions on own income and spending (as compared to a year ago) and one year ahead expectations in 19 major cities. The latest round of the survey was conducted from May 02 to May 11, 2022 covering 6,027 responses.
read all breaking news , today’s fresh news And IPL 2022 Live Updates Here.