Mumbai: Household inflation expectations rose in March after two months of decline, according to the Reserve Bank of India’s (RBI) latest inflation expectations survey released on Thursday.
The survey said the median expectation of inflation in three months increased to 7.5% in March from 7.3% in December. The expected inflation one year ahead increased to 8.8% in March from 8.1% in the previous month.
Only, 37.9% of respondents said that three-month-ahead inflation will quicken compared with 28.9% a quarter ago.
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RBI conducts a survey of 5,084 urban households across 18 cities and asks individuals about their inflation expectations for the coming quarter.
For 2017-18, the central bank projects inflation to average 4.5% in the first half of the year and 5% in the second half.
Household inflation expectations inched up due to a rise in prices of vegetables and fruits. The consumer price index (CPI) rose to 3.65% in February compared to 3.17% a month ago.
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