Key Highlights
- Quarterly survey gathers households' expectations on current and future inflation across 19 major Indian cities.
- Data is collected both in person by a specialised agency and online, ensuring comprehensive coverage.
- Survey outcomes directly inform RBI’s inflation‑targeting framework and monetary policy decisions.
- Respondents evaluate price dynamics of essential goods, services and overall cost of living.
Detailed Insights
The Reserve Bank of India (RBI) introduced the ninth iteration of its Inflation Expectations Survey of Households (IESH) for September 2025. The questionnaire is administered in 19 metropolitan and non‑metropolitan locations, reflecting the diverse consumption habits of the country. A dedicated research firm based in Mumbai executes door‑to‑door interviews while the RBI portal offers an electronic alternative, thereby broadening participation.
The survey probes not only current inflation perceptions but also forecasts for the next three months and one year ahead. Respondents discuss expected changes in the price of generic goods, specific product groups such as food, energy, and medicines, and the overall level of price development. By amalgamating quantitative ratings with qualitative comments, the RBI gains a grassroots perspective that complements conventional statistical data.
Policy makers use the IESH results to calibrate the inflation‑targeting strategy, influence benchmark interest rates, and steer the macro‑economic environment. Moreover, insights into households’ expectations of price movements of essentials and services provide a real‑time image of the cost of living that helps the RBI anticipate shifts in consumption behaviour.
Key Concepts
- Inflation Expectations Survey of Households (IESH) – a quarterly tool that captures public views on current and future price trends.
- Inflation‑Targeting Policy – a monetary stance aimed at maintaining price stability while supporting economic growth.
- Household Survey Methodology – an approach that combines in‑person fieldwork and online responses to achieve representative coverage.
- Price Sensitivity of Essentials – the degree to which households react to commodity price changes, especially food, fuel, and medication.