Indian Households Expect Inflation to Reach 10 Percent

The Reserve Bank of India reported that median inflation expectations for households have risen to 10 percent for the next year and 9.9 percent for the next three months. According to the September 2026 Inflation Expectations Survey of Households, which polled 5,987 respondents across 19 major cities, the one-year expectation increased by 60 basis points from 9.4 percent in July.

Consumer concern remains high, with 88.9 percent of households anticipating a rise in general prices over the coming year. Food prices are a primary driver of this anxiety, cited as a concern by 84.9 percent of respondents for the short-term three-month horizon.

In response to these inflationary pressures, the RBI's Monetary Policy Committee raised the repo rate by 25 basis points to 5.50 percent on October 7. While the central bank is using these tools to combat inflation, it clarified that the survey results represent household perceptions rather than the bank's own official inflation forecasts.