As professional forecasters process large volume  5  Posen, Adam (2011), ‘The soft tyranny of inflation expectations’, Oxonia Distinguished Lecture, Oxford, February 22. BIS central bankers’ speeches  3  of information and rely on econometric models, their forecast of inflation expectations can be considered more rational than that of pure households.
Measures of expectations in India I now turn to issues pertaining to measurement of inflation expectations in India. In the recent years, the Reserve Bank has been assessing the state of inflation expectations in the Indian economy through several means. It conducts a series of surveys aimed at different economic agents as well as model based inflation forecasts (Table 1).