Households' inflation expectations for next one year edged up to 9.3%

The Reserve Bank released the results of May 2026 round of its bi-monthly Inflation Expectations Survey of Households (IESH). The survey was conducted during May 2-11, 2026, in 19 major cities, with 5,936 responses. RBI noted that the current median inflation perception of households increased sequentially by 60 basis points (bps) to 7.8 per cent as compared to the previous round. Their inflation expectations for the next three months and one year edged up by 80 basis points and 50 basis points, respectively, reaching 9.3 per cent for both horizons. At the short-term horizon, the proportion of respondents anticipating higher general prices and inflation inched up; with similar trend observed across the product groups.

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