<h1>Inflation expectations shape monetary policy and must be measured, monitored and anchored to sustain price stability.</h1> Inflation expectations affect wage bargaining, pricing and monetary equilibrium; they form both adaptively and forward lookingly, exhibit bounded rationality, and must be measured by market based (inflation indexed bonds, yield curves) and survey based (households, consumers, producers, professional forecasters) methods. RBI surveys show household expectations dominated by food inflation and adaptive learning, while professional forecasters' medium term expectations have risen with persistent inflation. Policy recommendations include broadening survey coverage, issuing inflation indexed securities to extract market signals and commit to price stability, and promoting research on expectation formation.