Thu, 11 Aug 2011 14:52:05 GMT

High inflation to persist: RBI survey

Mumbai: Urban households expect inflationary pressure to sustain through this fiscal and the first quarter of 2012-13 and feel there may not be any softening of food prices, an RBI survey shows.

High inflation to persist: RBI survey

While June 2012 household inflation is expected to be 12.9 per cent, up from the 12.7 per cent perceived for March 2012, daily-wage workers and housewives expected higher inflation rates to continue.

As per the 'Inflation Expectations Survey of Households: June 2011 (Round 24)' conducted by the apex bank, the rise will be mainly on account of movement in food prices.

It also found that 25 per cent of the respondents surveyed believe that the Reserve Bank is taking necessary action to control inflation.

While the housewives surveyed said they expect inflation to be 13.1 per cent by June 2012, daily wage workers said it would be 13.4 per cent.

On the other hand, financial sector employees and self-employed projected inflation to be 12.1 per cent and 13 per cent, respectively, by year-end.

"Unlike in last round of the survey, the percentage of respondents expecting price rise have gone up for all product groups (viz., food, non food, households durables, housing and services)," the survey said.

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