The Reserve Bank of India has released the results of its latest inflation expectations survey for households, conducted between March 1-10, 2025, across 19 major cities. A total of 6,091 responses were collected. The survey shows that households’ median inflation perception dropped by 0.5% (50 basis points) from the last survey, reaching 7.8%. This is the lowest level of inflation perception since the pandemic started.
Inflation expectations for the next three months and the coming year also dropped. Expectations for the next three months decreased by 0.4% (40 basis points), and for the next year, they fell by 0.5% (50 basis points). As a result, the inflation expectation for the three-month period now stands at 8.9%, while for the one-year period, it is 9.7%.
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Fewer people now expect prices to rise in the near future or over the next year. Additionally, respondents believe inflation pressures will ease in most product categories, especially for food items and housing, over both time periods.
In summary, the perception of inflation has significantly dropped, reflecting a more optimistic outlook for price stability.
