Business inflation expectations rise to 5.01 pc in September: IIM-A survey
Ahmedabad, Nov 4 (TNT) : Business inflation expectations in India increased by 17 basis points to 5.01 per cent in September 2026 from 4.84 per cent in August, crossing the five per cent mark after three months, according to the Business Inflation Expectations Survey (BIES) conducted by the Indian Institute of Management Ahmedabad (IIM-A).
The survey, conducted by the Misra Centre for Financial Markets and Economy at IIM Ahmedabad, was based on responses from around 1,000 companies, primarily from the manufacturing sector.
It said uncertainty surrounding business inflation expectations remained elevated at around two per cent for the ninth consecutive month.
The survey indicated a marginal increase in cost pressures, with the proportion of firms reporting very significant cost increases of over 10 per cent rising to 22 per cent in September from 16 per cent in August.
At the same time, the share of firms reporting significant cost increases in the range of 6 to 10 per cent declined to 20 per cent from 25 per cent. Firms reporting moderate cost increases of 3 to 6 per cent rose to 25 per cent from 22 per cent.
On the demand front, business sales expectations remained buoyant for the fourth consecutive month.
More than 51 per cent of firms reported sales at about normal or higher levels during September.
The survey also found an improvement in profit margin expectations over the past four months.
The proportion of firms reporting profit margins below or somewhat below normal declined to 64 per cent in September from 68 per cent in August.
The monthly survey assesses business leaders’ expectations on future inflation, production costs, sales levels and profit margins, providing an indication of prevailing business conditions and demand trends.
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