RBI Survey: Nearly 80% People Say Housing Prices Will Go Up
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The Reserve Bank of India (RBI) recently released its survey on the Inflation Expectations Survey of Households that studied people’s opinion on inflation between March 2017 to March 2018.
Here is a look at the numbers:-
Prices in general
On the whole, Indian households expected a price rise. While 90.8 per cent of those participating in the survey said prices would rise, 56.7 per cent said they would increase more than the current rate (March 2017) while 28 per cent participants said that price increase would be similar to the rate that existed in March 2017. Only 6.2 per cent of participants said that price increase would be less than what was at the existing rate. An optimistic 7.1 per cent said there would be no change in prices while 2.2 per cent of those who participated said prices may decline.
Housing prices
As against 56.7 per cent of participants who said they expected prices to rise in March 2017, a year on, about 80.2 per cent expected prices to move up. About 50.9 per cent of participants also expected prices to increase more than the inflation rates that existed in March 2017 while 22.5 per cent people felt that price increase may be similar to the rates in 2017.
Some 6.8 per cent also believed that by March 2018, price increase would be less than the current rate, 13.9 per cent said there would be no change in prices while 5.9 per cent felt there would be decline in prices.
Household durables
In 2017, 54.2 per cent felt prices would rise owing to inflation and by March 2018, 71.1 per cent expected prices to rise. Of the latter, 40.1 per cent of survey participants felt that prices would be up and more than the rate that prevailed in March 2017. Another 23.4 per cent felt that the rise could be at the same or similar rate. The survey suggests that 7.7 per cent felt prices could increase but at a rate lower than the prevailing one while an optimistic 19.9 per cent felt there would be no change in prices and another 9 per cent said they expected prices to decline.
On the whole, the majority expected prices to rice. Consumer inflation rate was highest in November 2017 at 4.88 per cent, the highest since July 2016 and much above the market expectations of 4.2 per cent.
Note: Financial sector employees, self-employed, homemakers, retired persons, daily workers and other employees took part in the survey.
- by Sneha Sharon Mammen
Source : PropTiger
