Reserve Bank of India Launches Surveys for Monetary Policy Insights

November 2, 2023

On November 1, the Reserve Bank of India (RBI) announced the introduction of two significant surveys, the ‘Inflation Expectations Survey of Households’ and the ‘Consumer Confidence Survey,’ aimed at providing valuable inputs for its bi-monthly monetary policy decisions. The next bi-monthly monetary policy review is scheduled to take place from December 6 to 8.

Inflation Expectations Survey of Households

The ‘Inflation Expectations Survey of Households’ is designed to gather subjective assessments of price movements and inflation. It is based on the individual consumption patterns of households across 19 major cities in India, including Bhopal, Bhubaneswar, Chandigarh, Chennai, Delhi, and Thiruvananthapuram. The survey on inflation solicits both qualitative and quantitative responses from households:

Qualitative responses inquire about households’ expectations regarding price changes in the three months ahead and the one-year ahead period.
Quantitative responses are collected for current inflation rates, expectations for inflation in the next three months, and expectations for inflation in the next one year.

This survey aims to provide a comprehensive understanding of how households perceive inflation, allowing the RBI to better gauge public sentiment on price stability.

Consumer Confidence Survey

The ‘Consumer Confidence Survey’ is intended to gauge the sentiments of households on various economic aspects. This survey seeks responses from households regarding their views on:

General economic conditions
Employment scenario
Price levels
Household income
Household spending

Similar to the ‘Inflation Expectations Survey,’ the ‘Consumer Confidence Survey’ is also conducted in 19 cities, including Ahmedabad, Bengaluru, Bhopal, Bhubaneswar, Chandigarh, Chennai, and Delhi. By capturing these insights, the RBI aims to gain a deeper understanding of the economic well-being and sentiments of households across the country.

Informing Monetary Policy Decisions

The results of these surveys will provide the Reserve Bank of India with valuable inputs for shaping its monetary policy decisions. By considering the perceptions and expectations of households on inflation and broader economic conditions, the RBI can make more informed and data-driven choices to maintain price stability and support the overall economic well-being of the nation.

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