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The Reserve Bank of India (RBI) in its latest survey report has stated that the household inflation expectation and consumer confidence rose in March. The survey was conducted during March 2 to 11, 2022 in 19 major cities. As per the survey report, households’ median inflation perception for the current period remained unchanged at 9.7 per cent in the latest survey round, while the expectations for both three months and one-year ahead rose by 10 basis points each to 10.7 per cent and 10.8 per cent, respectively, compared to January 2022 round.

The RBI said ‘for a majority of population and age groups, uncertainty in inflation expectations increased for both three-month and one-year horizons, as compared to the previous survey round’. Three months ahead of expectations for overall prices and inflation were generally aligned to those for food and non-food products, while one-year ahead expectations were more aligned to those for non-food products and services.

The report also stated that consumer confidence for the current period continued on its recovery path. The current situation index (CSI) improved further in March 2022 on the back of improved sentiments on general economic situation, employment and household income. Households’ opinion about current and future spending remained in positive territory and was bolstered by a rise in both essential and discretionary spending.