In November, the median perception of current inflation among households increased to 8.4%, up by 30 basis points from the previous survey round in September, according to the Reserve Bank of India (RBI) Households’ Inflation Expectations Survey. Meanwhile, expectations for inflation over the next three months moderated slightly by 10 basis points, reaching 9.1%. However, households' expectations for inflation a year ahead inched up by 10 basis points to 10.1%.

The survey revealed that a slightly lower proportion of households expected higher inflation in the short term (three months ahead), attributing this to anticipated lower pressures from non-food items and services. On the other hand, a larger share of respondents expected inflation to rise over the next year, mainly due to expected increases in food prices and housing-related expenses.

Consumer confidence, as per the RBI's Consumer Confidence Survey, showed a minor decline. The current situation index fell by 0.7 points to 94 in November 2024, reflecting weaker sentiment across various economic parameters, except household spending. Despite this, households expressed greater optimism about their economic outlook for the coming year, especially in terms of future income and employment conditions. They also indicated a higher expected increase in spending over the next year, driven by both essential and non-essential expenditures.