Question
Which of the following best describes the type of
responses collected in the Inflation Expectations Survey of Households (IESH)?Solution
The IESH (September 2025) seeks both qualitative and quantitative responses. On the qualitative side, households are asked about their perceptions of expected price changes in the next three months and next one year. On the quantitative side, they provide numerical estimates of expected inflation rates. This dual approach allows the RBI to understand not only the direction of public sentiment but also the magnitude of expected inflation, thus enabling better monetary policy decisions.
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