INFLATION EXPECTATIONS OF HOUSEHOLD SURVEY

INFLATION EXPECTATIONS OF HOUSEHOLD SURVEY

Subject : Economics

Context : The Reserve Bank of India (RBI)  announced the launch of the next round of household surveys to capture inflation expectations and consumer confidence, which provide useful inputs for its monetary policy.

Concept :

• RBI said it aims to capture subjective assessments on price movements and inflation from about 6,000 households based on their individual consumption baskets across 18 cities.
• The survey is conducted regularly across 13 cities — Ahmedabad, Bengaluru, Bhopal, Chennai, Delhi, Guwahati, Hyderabad, Jaipur, Kolkata, Lucknow, Mumbai, Patna and Thiruvananthapuram. The survey covers about 5,400 respondents across 13 cities.
• The survey seeks qualitative responses from households on price changes (general prices as well as prices of specific product groups) in the next three months as well as in the next one year and quantitative responses on current, three-month ahead and one-year ahead inflation rates.
• The RBI said the result of the surveys provides useful inputs for monetary policy. The next meeting of the Monetary Policy Committee, the rate-setting panel, is scheduled for February 3-5, 2021.