NRB makes public results of Inflation Expectation Survey; inflation expected to hit 14%

As per the survey, the inflation rate in next three months will, apparently, reach 14 percent.

The survey was conducted during July 4 to 11, 2022, among individual respondents from 31 market areas of twenty-eight cities through field interviews.

The results are based on responses from 1,141 urban individuals, with additional 210 individuals in this survey compared to the number of individuals included in the previous survey.

In the survey, 94.7 percent of respondents expected price level to increase in next three months. Likewise, 94.4 percent of respondents expected price level to increase over the next one year.

The share of respondents expecting price increases in next three months has slightly increased from mid-April, 2022, while the share of respondents expecting price increase over the next one year has slightly decreased.

Similarly, the survey shows that the share of respondents expecting price increase in next three months across the entire listed product groups except Non-Food and Services and Real Estate (Housing) has increased from mid-April, 2022.

Likewise, the share of respondents expecting price increase in one year ahead across the entire listed product groups has decreased, except Vegetable and Fruits; and Fish, Meat, Milk, Ghee and Oil, compared to mid-April, 2022.

While median inflation expectation for three months has increased, median inflation expectation for one year ahead has been slightly decreased compared to mid-April, 2022.

Median inflation expectations for three months and one year ahead stand at 14 percent and 13.5 percent respectively.

The current median inflation perception is 14 percent.

This shows that individuals expect inflation to slightly increase in the near term and decrease in the medium term.