I will sequence my presentation as follows: first, I briefly review the theory and practice of defining inflation expectations; second, discuss the measures of inflation expectations; third, analyse the measures of inflation expectations in India; and finally, conclude with some thoughts on enhancing our understanding of the inflation process and expectations.
On the price front, import prices are on a rising trend with some fluctuations, reflecting developments in prices of overseas commodities such as crude oil. Domestic corporate goods prices have been declining gradually on the whole with the continued fall in machinery prices, despite the rise in import prices and the improved supply-demand balance in materials industries.