The Reserve Bank released the results of May 2024 round of its bi-monthly inflation expectations survey of households (IESH)1 2. The survey was conducted during May 2-11, 2024 in 19 major cities, with responses from 5,943 urban households. Female respondents accounted for 52.6 per cent of this sample.
Findings:
l Households’ inflation expectations for the three months and one year ahead periods increased by 20 basis points (bps) and 10 bps, respectively, but remained in single digits; their perception on current inflation, however, moderated by 10 bps and stood at 8.0 per cent in the latest survey round.
l Higher share of respondents expected prices and inflation to rise for all major product groups over the next three months as well as one-year periods.
l At the aggregate level, female respondents had marginally lower inflation assessment and expectations than their male counterparts.
l Among occupation categories, self-employed respondents group expected highest inflation.
l For one year horizon, households’ expectations on general prices remained closely aligned with their assessment related to food prices and housing.