RBI Study: Indian Households Show Upward Inflation Bias

Imagine if you always thought things would cost more than they actually do.

That's kind of what's happening with some people in India when they think about how much things will cost in the future.

A study by the Reserve Bank of India (RBI) found that regular folks often expect prices to go up faster than experts and businesses do.

This has been happening for a long time, even when prices were stable.

However, things have gotten a bit better due to changes in how the government handles money and other actions.

People like men, older adults, and those who work for themselves tend to think prices will rise faster.

But when food prices go up or bad weather happens, people's ideas about future prices can change quickly.

Experts say it's important to keep prices under control to help people feel good about the economy.