Informist, Thursday, Aug. 7, 2025

MUMBAI – Indian households' perception of current inflation declined sharply in July with price pressures easing across products, including food and expenses related to housing, according to Reserve Bank of India's households' inflation expectations survey released Wednesday. Households also expect lower price pressures a year ahead, the survey results showed.

Households' median perception of current inflation declined by 50 basis points to 7.2% in July from May. Their inflation expectations for the next three months and one year moderated by 60 bps and 50 bps, respectively. The RBI conducted the survey during Jul. 1-Jul. 12 in 19 major cities with 5,197 responses.

"For both short term and one year ahead, the shares of respondents anticipating rise in general prices and inflation has come down," the central bank said. "Price and inflationary pressures eased across major product groups, including food products, non-food items, and expenses related to housing."

CPI inflation fell to a 77-month low of 2.1% in June and is expected to decline to a record low of 1.3% in July, as per an Informist poll. The RBI Wednesday lowered its inflation forecast for 2025-26 (Apr-Mar) by 60 bps to 3.1%.

In another forward looking survey, the central bank found consumer confidence in the urban areas improved in July with the Current Situation Index rising 1.1 points to 96.5. Urban consumer confidence for the year ahead remained optimistic, indicating robust confidence in outlook. The Future Expectations Index rose 1.3 points to 124.7 in July.

Consumer confidence also improved in rural areas with the Current Situation Index inching up to 100.6 in July from 100.0 in May. The Future Expectations Index rose to 127.7 last month from 126.2 in May, indicating households were are increasingly optimistic about the year-ahead outlook. End

Reported by Shubham Rana

Edited by Subhojit Sarkar

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