Business Inflation Expectations Survey (BIES) – May 2023

Contributing valuable insights to support macro monetary policy formulation since 2017

Survey released every month by the Misra Centre for Financial Markets and Economy


Ahmedabad, July 6:  The Misra Centre at the Indian Institute of Management Ahmedabad (IIMA), today released the BIES Survey for the month of May 2023. Authored by Professor Abhiman Das, the BIES Survey is the only business inflation survey to be published in India since May 2017. Over the six years, the BIES survey from IIMA has contributed to effective monetary policy formulation by providing valuable insights which have been referred to by various policy makers, government, and industry.

Key messages of May 2023 survey are as follows: 

Average inflation expectations of the firms reverted to below 4% for the first time since October 2020
One year ahead business inflation expectation declined sharply by 44 basis points to 3.87% in May 2023, from 4.31% reported in April 2023.
Sales expectations of the reporting firms have relatively improved. However, over 57% of the firms are still reporting ‘much less than normal’ or ‘somewhat less than normal’ sales in May 2023
Profit margin expectations remained subdued.