RBI study finds Indian household inflation expectations remain elevated post-pandemic, driven by demographics, supply shocks, and policy impact.

• Older men, self-employed, and daily wage earners show higher inflation fears; younger salaried groups are more aligned with actual trends.
• Flexible Inflation Targeting, fiscal steps, and easing inflation helped lower both expectation levels and disagreement among households.
• Study highlights policy communication challenges, stressing RBI’s key role in anchoring diverse and often non-rational household expectations.