The May 2020 business inflation expectation survey of IIM Ahmedabad

The following is a summary of the business inflation expectation survey (BIES) of May 2020, which has been regularly done by the Indian Institute of Management Ahmedabad since May 2017, currently with around 1300 respondents. Notes on the survey are given below.* 1. As the lockdown of the economy due to the ongoing Covid-19 pandemic was partially lifted, the number of firms participating in BIES for May 2020 has improved. Also, the survey instrument could be reverted to the full questionnaire as against a shortened questionnaire implemented in April 2020. Accordingly, the survey results are presented for inflation expectations and perceptions about cost, sales and profit.  BIES Survey, Inflation expectations Infographic IIM-A 2. One year ahead, business inflation expectations in May 2020 have declined marginally by 13 basis points to 4.24% from 4.37% reported in April 2020. However, they continue to remain over 4% for the past three consecutive months. Chart 2, BIES May 2020 Survey Infographic IIM-A 3. Over 37% of the firms perceive that the current cost increase is over 6%. However, 1/5th…

Choose your subscription to read more