Business inflation expectations decline, but concerns persist over sales, profitability: IIM-A Survey

By A Representative

Business inflation expectations continued to ease in February 2025, according to the latest round of the Business Inflation Expectations Survey (BIES) od the Indian Institute of Management-Ahmedabad.The one-year ahead inflation expectation, based on the mean probability distribution of unit cost increase, dropped by 18 basis points to 4.06%, down from 4.24% in January.

Uncertainty around these expectations ticked up slightly, with the standard deviation rising to 1.84% from 1.81% in previous rounds.

In a supplementary question, firms projected one-year ahead CPI headline inflation at 4.24%, a sharp decline from 4.96% in December 2024. Uncertainty in CPI projections remained low, at around 0.90%.

The survey also reflected easing cost pressures. The share of firms reporting significant cost increases (over 6%) fell to 25% in February, compared to 30% in January. Moderate cost increase reports (3.1%–6%) also declined to 26% from 32%.

However, concerns persisted over sales and profitability. About 32% of firms reported sales ‘much less than normal’—up from 23% in January. Similarly, around 69% of firms reported ‘somewhat less than normal’ or lower profit margins, up from 63%.

The BIES provides critical insights into firms’ inflation expectations and cost perceptions, aiding in the formulation of monetary policy.

Tribal rights under siege: Roundtable Seeks strong legal defence of land, jobs and PESA

By A Representative Tribal rights activists, legal experts, tribal leaders, former officials and civil society representatives from Andhra Pradesh and Telangana have called for urgent action on tribal land rights, employment and PESA safeguards. They were participating in roundtable on Constitutional Safeguards for Scheduled Tribes in the Telugu States at the Centre for Economic and Social Studies (CESS), Hyderabad. Former Governor Ch. Vidyasagar Rao chaired the deliberations.

Kamal Mitra Chenoy, scholar and student activist who never stopped being both

By Harsh Thakor* Professor Kamal Mitra Chenoy, who taught comparative politics and the Indian Constitution at the School of International Studies (SIS), Jawaharlal Nehru University, died on October 11. He was 75. A political scientist and public intellectual, he was known for his work on international relations, peace and conflict resolution, human rights and democratic values, and for his solidarity with students.

The indirect toll: How US debt and dollar dominance shape Bangladesh's economy

By Md. Abu Saim* The United States' federal debt has crossed $40 trillion. The number is almost impossible to comprehend. To put it in perspective, it equates to roughly $117,000 per American—and it would take nearly 110,000 years to repay at $1 million per day.

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