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Latest World News Update > Blog > Business > Households feel inflation is easing in short and medium term: RBI Survey – World News Network
Business

Households feel inflation is easing in short and medium term: RBI Survey – World News Network

Written by: worldnewsnetwork Last updated: June 7, 2025
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New Delhi [India], June 7 (ANI): 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)

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