The need to refine inflation expectation surveys and adjustment techniques is gaining importance as household responses continue to diverge from actual inflation outcomes. The RBI’s recent study on household inflation expectations highlights this gap and suggests that improved methods are necessary to capture how Indian households perceive price dynamics.After assuming office in December, RBI Governor Sanjay Malhotra announced plans to review the central bank’s forecasting models for inflation and growth, aiming to reduce projection errors.
.png)
