New Delhi: The Reserve Bank of India on Friday said that it will, for the first time, conduct a survey of inflation expectations in the country soon.
RBI Governor Y V Reddy on Friday said that as prices affect people, it was important to study inflation expectations to gauge the sentiments of the common man.
However, Reddy did not elaborate on the subject but bankers said that among the factors that generally influence inflation are people's expectations about price rise.
Though such studies are not foolproof, it will certainly act as an additional tool to monitor people's expectations on prices.
PTI quoted Reddy as saying that there were not many professional forecasters and the RBI would also make use of data available from the financial markets for the purpose.
Earlier, Prof Axel Weber, President of the Deutsche Bundesbank said that consumers could more easily give their expectation about prices of goods they consume daily but not about products which they do not use frequently.
Weber said that there has been a strong recovery in the world economy with credit to the private sector growing at record level. There is ample liquidity in the system that entails risk of rising inflation, he observed.
(With agency inputs)
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