By IANS,
Mumbai: Inflation is expected to remain stubbornly high in the current quarter and rise further by the end of this fiscal, led by soaring prices of essential commodities, especially food articles, according to a survey conducted by the Reserve Bank of India (RBI).
Urban households expect inflation to rise further by 40 basis points to 11.9 percent in April-June quarter and by 120 basis points to 12.7 percent during financial year 2011-12 from the perceived current rate of 11.5 percent, the RBI said in the June issue of its monthly bulletin.
“Households’ expectations of general price rise were mainly influenced by movements in food prices,” it said.
This was the 23rd round of the Inflation Expectations Survey conducted by the RBI. Over 4,000 urban households across 12 cities participated in the survey conducted in January-March quarter.
According to the survey, the percentage of respondents expecting price rise has gone down for all product groups, namely, general prices, food products, non-food, household durables, housing and services.
Daily-wage workers and housewives expected higher inflation rates compared to other categories. Across cities, Bangalore registered the highest inflation expectations and Patna the lowest.