(Bloomberg) -- Indian households expect inflation to moderate, showed Reserve Bank of India’s survey, echoing Governor Shaktikanta Das’ assessment that price pressures have peaked. 

Current inflation expectations dropped by 80 basis points to 9.3% in July, according to the median in the RBI survey of 5,935 urban households. The three-month and one-year ahead expectations also declined by 50 and 60 basis points, respectively.

The central bank raised the key policy rate half a point on Friday, reiterating a hawkish outlook as it pledged to bring the pace of price rise back to its 6% target. Inflation has moderated, but still remain “unacceptably high,” Das said. 

A separate survey showed consumer confidence continued to recover from the historic lows seen in July last year, though it remained pessimistic overall. Consumers expressed optimism on improved perception on employment, household income and spending, according to the survey. 

Meanwhile, capacity utilization in the manufacturing sector rose to 75.3% in the March quarter from 72.4% in the December quarter, improving for the third straight quarter, RBI’s survey showed. 

©2022 Bloomberg L.P.