MUMBAI (Reuters) – Indian household’s inflation expectations for the current period moderated by 20 basis points to 9.6%, while consumer confidence improved further, the results of the Reserve Bank of India’s latest round of internal surveys conducted in January showed.
India’s annual retail inflation rate eased to 5.72% in December from 5.88% in the previous month, falling below the RBI’s upper tolerance band of 2%-6% for a second straight month, though core inflation, which excludes more volatile food and fuel prices, was still running at 6.1%.
“Inflation expectation of households rose by 10 basis points for the three-months-ahead period, whereas their one-year-ahead expectations remained unchanged from the November 2022 round of the survey,” the central bank said on Wednesday in its households’ inflation expectations survey.
As per the survey, respondents expect higher price pressures for household durables and cost of housing over the next three months as compared to the previous survey round, the release showed.
Among consumption categories, the highest rise was expected in the food group.
A separate survey that obtains current perceptions and one-year ahead expectations on the general economic situation, employment scenario, overall price situation and own income and spending across 19 major cities, showed consumer confidence improved further.
“The current situation index continued on its recovery path for the ninth survey round since the historic low recorded in mid-2021 and increased by 1.3 points in January 2023 on the back of improved sentiments on general economic situation and household income,” the survey said.
(Reporting by Swati Bhat, Editing by Nivedita Bhattacharjee)
