<p>Less than five months into parliamentary elections, a Reserve Bank of India (RBI) survey has said that close to 90% households across 18 major cities, including Bengaluru, fear prices of food, fuel, housing and services will rise significantly in 2019.</p>.<p>Worse, the youth are more apprehensive of a price rise across the board in the next one year, implying they see fewer employment opportunities in 2019. A rise in inflation expectation has a direct bearing on wages and input costs of goods.</p>.<p>More than 85% household have said that the prices of food items will rise over next year as against 82% who felt the prices of non-food items will accelerate, according to the survey conducted by the RBI among nearly 6,000 households in Delhi, Mumbai, Chennai, Bengaluru, Kolkata, Ahmedabad, among other cities in November.</p>.<p>The number of people who expect prices of essential commodities to go up next year has risen in November from a similar survey conducted in September.</p>.<p>In November, 80.6% felt housing prices will rise on a longer term basis, higher than 77.9% who, in September, expected housing will cost more in the year to come. For a long time, the survey results have been showing households’ pessimism on property prices. The lack of demand has added to builders’ inventory.</p>.<p>This may have been the reason for the Centre announcing a major relief for home buyers late Saturday night. It said that no GST will be applicable on the sale of ready-to-move-in flats and buildings where the sale has taken place after the issue of completion certificate by government authorities.</p>.<p>The survey also showed that a whopping 83.3% of the households polled fear cost of services, too, will spike along with prices of goods. In September, lesser number of people were as pessimistic about services cost going up on a long-term basis.</p>.<p>Among Bengalureans, the median inflation expectation rose quicker than cities like Delhi and Mumbai.</p>.<p>Inflation expectation among those on the verge of retirement was maximum portraying their lack of faith in government measures to tackle price rise.</p>.<p>The survey, however, showed households' short term (three month) expectation of price rise was not as gloomy as that of long term.</p>.<p>Inflation expectations are subjective assessments of households covered in the survey and are based on their individual consumption baskets.</p>.<p>The results of this survey provide useful inputs to policy formulation, according to RBI.</p>
<p>Less than five months into parliamentary elections, a Reserve Bank of India (RBI) survey has said that close to 90% households across 18 major cities, including Bengaluru, fear prices of food, fuel, housing and services will rise significantly in 2019.</p>.<p>Worse, the youth are more apprehensive of a price rise across the board in the next one year, implying they see fewer employment opportunities in 2019. A rise in inflation expectation has a direct bearing on wages and input costs of goods.</p>.<p>More than 85% household have said that the prices of food items will rise over next year as against 82% who felt the prices of non-food items will accelerate, according to the survey conducted by the RBI among nearly 6,000 households in Delhi, Mumbai, Chennai, Bengaluru, Kolkata, Ahmedabad, among other cities in November.</p>.<p>The number of people who expect prices of essential commodities to go up next year has risen in November from a similar survey conducted in September.</p>.<p>In November, 80.6% felt housing prices will rise on a longer term basis, higher than 77.9% who, in September, expected housing will cost more in the year to come. For a long time, the survey results have been showing households’ pessimism on property prices. The lack of demand has added to builders’ inventory.</p>.<p>This may have been the reason for the Centre announcing a major relief for home buyers late Saturday night. It said that no GST will be applicable on the sale of ready-to-move-in flats and buildings where the sale has taken place after the issue of completion certificate by government authorities.</p>.<p>The survey also showed that a whopping 83.3% of the households polled fear cost of services, too, will spike along with prices of goods. In September, lesser number of people were as pessimistic about services cost going up on a long-term basis.</p>.<p>Among Bengalureans, the median inflation expectation rose quicker than cities like Delhi and Mumbai.</p>.<p>Inflation expectation among those on the verge of retirement was maximum portraying their lack of faith in government measures to tackle price rise.</p>.<p>The survey, however, showed households' short term (three month) expectation of price rise was not as gloomy as that of long term.</p>.<p>Inflation expectations are subjective assessments of households covered in the survey and are based on their individual consumption baskets.</p>.<p>The results of this survey provide useful inputs to policy formulation, according to RBI.</p>
