Indian Households Anticipate Inflation Decline: RBI Survey Shows Shift

In a significant development, Indian households are increasingly optimistic about declining inflation levels, according to the Reserve Bank of India's latest bi-monthly Inflation Expectations Survey of Households (IESH). Conducted in July 2025, this survey spanned 19 major cities, encompassing 5,197 valid responses, and indicates a broad reduction in inflationary concerns.

The survey revealed that the median perception of current inflation fell by 50 basis points, settling at 7.2% in July from 7.7% in May 2025. Expectations for inflation over the next three months and one year ahead also saw a decline by 60 and 50 basis points, bringing the figures to 8.3% and 9.0%, respectively.

City-specific insights highlighted diverse trends, with households in Bhopal anticipating the highest inflation rate at 11.2% for the next year, whereas Ahmedabad projected the lowest at 5.4%. Interestingly, demographic factors played a role, as the older and retired populations maintained higher inflation expectations, contrasting with daily workers who forecasted the lowest median expectation.

(With inputs from agencies.)