Who you are shapes your inflation expectations: RBI study
A new RBI study says Indian households have been expecting higher inflation than what actually happens—and they've done this for almost 20 years, even when prices were pretty stable between 2014 and 2020.
Interestingly, these expectations are way higher than those of professionals and businesses.
The report also points out that who you are—your age, job, or gender—shapes how you think about rising prices.
Older, poorer, self-employed more worried about rising prices
The study found older people, daily wage earners, and the self-employed usually expect bigger price hikes than young salaried folks.
Things like COVID-19 and global tensions made households even more worried about inflation.
While RBI's policies have helped bring actual inflation down recently, household expectations are still slow to catch up.
The takeaway? Better communication could help everyone get on the same page about where prices are really headed.