(10 Apr 2025, 12:12)

Households' median inflation perception drops to lowest level since the pandemic

The Reserve Bank released the results of March 2025 round of its bi-monthly inflation expectations survey of households (IESH). The survey was conducted during March 1-10, 2025, in 19 major cities, with 6,091 valid responses. The central bank noted that households' median inflation perception declined by 50 basis points (bps) from the previous survey round to 7.8 per cent, marking its lowest level since the pandemic. Inflation expectations for the three months and one-year ahead horizons also moderated by 40 bps and 50 bps to 8.9 per cent and 9.7 per cent, respectively. A lower share of households anticipated a rise in general prices and inflation for both the near term and the coming year compared to the previous survey round. Respondents expect easing of inflationary pressures across most of the product groups, especially for food products and housing for both the time horizon.

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Households' median inflation perception drops to lowest level since the pandemic