The Reserve Bank of India this month announced the launch of two significant surveys that stand as an integral resource for the formulation of Monetary Policy, the “Inflation Expectations Survey of Households” and the “Consumer Confidence Survey.” This Bi-Monthly Monetary Policy Review is scheduled to take place from December 6 to 8.
The purpose of the “Inflation Expectations Survey of Households” is to collect subjective opinions regarding inflation and price changes. It is predicated on the individual consumption habits of households in India's largest cities, including Chennai, Delhi, Bhopal, Chandigarh, and Thiruvananthapuram. Households are asked to provide both qualitative and quantitative answers to the inflation survey:
Qualitative range questions include inquiries about households' expectations regarding price changes in the upcoming three months and one year, encompassing current inflation rates and forecasts for the next three months and one year. The following highlight the previous segments’ “Inflation Expectations Survey of Households” survey report -
The "Consumer Confidence Survey" aims to gauge households' sentiments about different aspects of the economy. Participants are invited to express their opinions on general economic conditions, employment prospects, price levels, household income, and household spending.
Similar to the "Inflation Expectations Survey," the "Consumer Confidence Survey" is conducted in 19 cities, including Bengaluru, Ahmedabad, Chandigarh, Chennai, Delhi, Bhopal, and Bhubaneswar. These insights contribute to comprehending the overall economic well-being and sentiments of households nationwide. The following highlights the previous segments’ “Consumer Confidence Survey” report: -
The Indian economy has demonstrated remarkable resilience and progress amid a challenging global environment. Despite uncertainties and disruptions globally, India has sustained momentum and moved forward, credited to robust underlying macroeconomic fundamentals and buffers. Given this, the RBI can enhance its ability to preserve price stability and promote the overall economic well-being of the country by making more informed and data-driven decisions, incorporating households' perspectives and expectations regarding inflation and general economic conditions.