Housewives Aren’t Happy With Reserve Bank of India’s Decision
- IWB Post
- August 10, 2015
The RBI has reshaped monetary policy to fight inflation, however the housewives seem unconvinced.
A survey by RBI this week showed households expect consumer inflation to hit 10.1 percent within three months, almost double the current 5.4 percent.
A housewife, Shaila Pai, told Financial Express why she isn’t happy with the changes, saying, “The biggest part of our household expenses goes towards education, food and medicines, and all of them are very expensive. We can’t cut corners much there. I expect hospital, food, education costs will continue to rise in the double digits.”
The biggest increase has been the education sector which is the core of every Indian family with children. Education cost rose up to 7.23% in June.
Rajan on Tuesday said that the RBI will study the inflation expectations and how it affects the consumer behaviour. He said, “If we really want to manage inflation, we have to look at the sum total of inflation, especially the inflation that confronts consumers because that is what determines things like household savings behaviour. It also determines the wage pressures that will come.”
What’s your opinion?