Indian households see moderation in price pressures over a year

RBI held its key policy rate unchanged on Wednesday, but revised its inflation forecast for the fiscal year down sharply to 2.6%, from the earlier projection of 3.1%.
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FRANCIS MASCARENHAS

Indian households expect price pressures to moderate over the next three to 12 months after rising in the current period, according to surveys conducted by the country’s central bank.

The Reserve Bank of India’s household inflation expectations survey, conducted between August 28 to September 6, showed that the median perception of current inflation inched up by 20 basis points in comparison to the previous round in July, in which inflation expectations for the period had declined sharply. 

However, in the latest round, inflation expectations for the next three months and one year ahead declined by 20 bps and 30 bps. In such surveys, the direction of change, rather than the absolute level, is more important. 

“Households reported easing of price and inflationary pressures in major product groups including food products, non-food products, housing and cost of services for both the time horizons,” the RBI said. 

The central bank held its key policy rate unchanged on Wednesday, but revised its inflation forecast for the fiscal year down sharply to 2.6 per cent, from the earlier projection of 3.1 per cent.

In a separate survey, consumer confidence in both urban and rural areas showed marginal improvement. Consumer confidence for the year ahead continued to remain in optimistic territory, the RBI said.

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Published on October 1, 2025