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      Question

      Which of the following best describes the type of

      responses collected in the Inflation Expectations Survey of Households (IESH)?
      A Only quantitative on exact inflation rate Correct Answer Incorrect Answer
      B Only qualitative on perception of prices Correct Answer Incorrect Answer
      C Both qualitative on price changes and quantitative on inflation rates Correct Answer Incorrect Answer
      D Only household income and spending data Correct Answer Incorrect Answer
      E Only data on employment levels Correct Answer Incorrect Answer

      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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