Indian households see moderation in price pressures over a year

The RBI maintained its key policy rate unchanged this week, while sharply lowering its annual inflation forecast to 2.6% from 3.1%.
| Photo Credit:
FRANCIS MASCARENHAS

Indian households anticipate inflation easing over the next quarterly and annual periods, despite recent price increases, according to recent surveys by India’s central bank.

The Reserve Bank of India’s latest household inflation expectations survey revealed the median perception of current inflation rose by 20 basis points compared to the July survey results. However, expectations for the next three months and one year dropped by 20 basis points and 30 basis points respectively. Analysts note that the directional trend of expectations holds more significance than the absolute figures.

Survey participants reported reduced price pressures across key categories including food products, non-food items, housing, and services for both the three-month and one-year horizons. The fresh data comes after the RBI revised its inflation projection downward significantly to 2.6% for the fiscal year, while maintaining its benchmark interest rate unchanged.

A separate consumer confidence survey revealed slight improvements in sentiment across both urban and rural areas. The outlook for the coming year remains in positive territory, according to the central bank’s findings.

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Published on October 1, 2025