Consumers see prices falling further
With the inflation rate falling, the Indian consumer’s optimism about cooling prices has gone up.
By Meghna Maiti, ET Bureau |
MUMBAI: With the inflation rate falling, the Indian consumer���s optimism about cooling prices has gone up. A survey done by Boston Analytics, a customised knowledge services company, across 13 cities (over 7,500 consumers) said the consumer sentiment index, which began moving upward in August, touched an all-time high of 79.2 in November, an increase of about 80%, as against 44 in October. The index started rising since March 2008.
Boston Analytics Consumer Sentiment Index is a monthly barometer of the Indian consumers��� opinion on the current state and expectations of the macro economy, household financial conditions and consumption. India���s inflation rate dropped to 6.84% for the week ended December 6 after touching a peak of 12.91% in August.
���As the country���s wholesale price index falls to single digits, inflationary fears are cooling down. Indian consumers are clearly telegraphing this. The consumer sentiment, which started falling early this year, is shooting up since August. It significantly went up last month,��� says Shirin Bagga, associate project manager of Boston Analytics. The prices of goods and services in general have declined with the policy intervention of RBI.
With crude oil and commodity prices are falling, the inflation is also declined.
The country���s inflation rate fell to a six-month low for the week ended November 27, 2008. Survey respondents were asked to express their sentiment about the current state of inflation along with their expectations on inflation. About 77% of the respondents expect an increase in price levels in the next 12 months, as against 81% in the October survey.
The survey noted that there are differences across cities within the aggregate consumer sentiment index. For example, sentiment related to inflation was marginally higher in Mumbai compared with tier II and tier III cities, where consumers were much more optimistic.
Boston Analytics Consumer Sentiment Index is a monthly barometer of the Indian consumers��� opinion on the current state and expectations of the macro economy, household financial conditions and consumption. India���s inflation rate dropped to 6.84% for the week ended December 6 after touching a peak of 12.91% in August.
���As the country���s wholesale price index falls to single digits, inflationary fears are cooling down. Indian consumers are clearly telegraphing this. The consumer sentiment, which started falling early this year, is shooting up since August. It significantly went up last month,��� says Shirin Bagga, associate project manager of Boston Analytics. The prices of goods and services in general have declined with the policy intervention of RBI.
With crude oil and commodity prices are falling, the inflation is also declined.
The country���s inflation rate fell to a six-month low for the week ended November 27, 2008. Survey respondents were asked to express their sentiment about the current state of inflation along with their expectations on inflation. About 77% of the respondents expect an increase in price levels in the next 12 months, as against 81% in the October survey.
The survey noted that there are differences across cities within the aggregate consumer sentiment index. For example, sentiment related to inflation was marginally higher in Mumbai compared with tier II and tier III cities, where consumers were much more optimistic.
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