Indian households are increasingly worried about rising prices, according to the Reserve Bank of India’s latest Inflation Expectations Survey of Households. Conducted in September across 19 major cities with 5,987 respondents, the survey shows perceptions and expectations climbing sharply. Median inflation perception rose to 8.4% from 7.8% in the previous round. Expectations for the next three months increased to 9.9% from 9.2%, while the one‑year outlook touched 10.0% compared with 9.4% earlier.
These figures reflect household sentiment rather than actual inflation, which is measured separately through the Consumer Price Index. Still, the RBI has warned that price pressures are broadening. Food and fuel costs have been the main drivers, with households feeling the pinch in daily expenses. Rising expectations matter because they influence how people spend, save, and negotiate wages. If households believe inflation will remain high, they may cut back on discretionary purchases or demand higher pay, which can reinforce inflationary trends.
The RBI recently raised its FY27 inflation forecast to 5.2% from 5% and shifted policy towards tightening, lifting the repo rate to 5.5%. Policymakers are cautious that persistent high expectations could complicate inflation management. For now, sentiment remains elevated, highlighting the challenge of anchoring inflation around the 4% target.