New Delhi, July 25 -- A study by Reserve Bank of India staff has found that India's adoption of flexible inflation targeting has been effective in anchoring inflation expectations among the population.

The research, published in the central bank's July bulletin, examined how different demographic groups perceive and respond to inflation trends.

The study revealed that Indian households maintain elevated inflation expectations even during periods of price stability, showing higher levels compared to professional forecasters.

This persistent tendency suggests that public perception of inflation often differs from expert assessments and actual price movements.

Demographic characteristics significantly influence how individuals form infla...