The Reserve Bank of India (RBI) has revealed that urban households in 19 cities across the country anticipate a decrease in inflation in the near future. The findings, based on a survey conducted in September, indicate a 50 basis point decline in the perception of current inflation, according to data released on Friday.
The survey also noted moderated expectations for inflation three months and one year ahead, with reductions of 90 and 40 basis points respectively. The RBI underscored the significance of the direction of these changes, rather than their absolute sizes.
Despite these projections, the RBI has maintained its policy rates and retained its inflation forecast at 5.4% for the fiscal year ending in March 2024. This comes as lower price and inflationary pressures are expected across most product groups, with the exception of the self-employed category.
In an effort to indirectly manage inflation, the RBI has implemented a bond sale program. This initiative aims to elevate interest rates and reduce liquidity in the system, serving as a tool for economic stability.
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