Consumer Confidence Survey and Household Inflation Expectation Survey

Consumer Confidence Survey and Household Inflation Expectation Survey

• CONSUMER CONFIDENCE in the country plummeted to a historic low in July 2020
• The current situation index plunged to an all-time low of 53.8 inJulywhencomparedwith the index one year ago, as against 63.7 in May this year, according to the RBI’s latest consumer confidence survey
• However, the future expectations index (FEI) charted back into the positive territory, indicating signs of recovery for the year ahead, the RBI survey said.
• As per RBI’s households’ inflation expectations survey, inflation expectations for both three months and one-year horizons increased by10 basis points each, over the previous round.

About Consumer Confidence Survey

• RBI conducts quarterly ‘Consumer Confidence Survey’ in which RBI collects responses on household’s perceptions and expectations on the general economic situation, the employment scenario, the overall price situation, and their own income and spending. 

About Household Inflation Expectation Survey

• RBI conducts the ‘Inflation Expectation Survey’ of households every quarter wherein RBI gauges the household’s expectation regarding inflation for the three months ahead and one-year ahead period. Basically, RBI asks people what do you think, what will be the inflation next year. These surveys are used for monetary policy purposes.

Source: Indian Express