Inflation Expectations Survey of FY 2079/80 - Q2; Median Inflation Expectations For One Year Ahead Stands at 12%

The findings of the Inflation Expectations Survey (IES) for the second quarter of FY 2022/23 have been made public by Nepal Rastra Bank. Individual respondents from 60 market locations were surveyed via field interviews from January 8 to January 14, 2023. The outcomes are based on feedback from 2,010 people.

Highlights:

• The share of respondents expecting price increase in food and its sub-group except Fish, Meat, Milk, Ghee and oil and Hotel and Restaurant has increased. The share of respondents expecting price increase in non-food and services and real estate (housing) during the next three months has slightly decreased compared to that of mid-Oct, 2022.

• 84.6 percent of respondents expected price level to increase in next three months. Likewise, 92.3 percent of respondents expected price level to increase over the next one year. The share of respondents expecting price increases in next three months as well as next one year has decreased from mid-Oct, 2022.

•  The share of respondents expecting price increase in one year ahead across the entire food products, except for Fish, Meat, Milk, Ghee and oil, Drinks and Tobacco and Hotel and Restaurant along with non-food and services groups has decreased compared to mid-Oct, 2022.

• Median inflation expectation for three months ahead and one year ahead has remained same compared to mid-Oct, 2022 and mean inflation expectation for three months ahead and one year ahead has decreased. Median inflation expectations for three months and one year ahead stands at 10.0 percent and 12.0 percent respectively. This shows that individuals expect inflation to remain stable in the near term as well as in medium term.

A complete PDF file of the Inflation Expectations Survey (IES) for reference: