RBI survey shows consumer confidence rises in rural, urban areas in July

RBI's July survey shows higher consumer confidence in rural, semi-urban and urban areas, driven by optimism on economy, jobs, incomes and easing inflation expectations

Consumer confidence in urban, semi-urban, and rural areas improved in July, reflecting positive sentiment about general economic conditions, the employment scenario, income, and the overall price situation, according to Reserve Bank of India (RBI) surveys.

 

The RBI’s July consumer confidence survey for urban areas showed marginal improvement, with the Current Situation Index (CSI) rising to 96.5 in July 2025 from 95.4 in May 2025.

 

For the one-year-ahead period, confidence in the urban region remained in optimistic territory. The Future Expectations Index (FEI) rose to 124.7 in July from 123.4 in May 2025.

 

Pessimism on the current price level and inflation eased sequentially over the past three rounds. Urban households also expect a decline in both price levels and inflationary pressures over the coming year.

 

Although households were more optimistic about their current earning situation, the outlook for future earnings remained similar to the previous round, the survey found.

 

Referring to trends in semi-urban and rural areas, another RBI survey indicated improvement in consumer confidence for the present period. The CSI inched up to 100.6 in July from 100 in May 2025. The FEI continued its upward trend over the past six rounds, rising to 127.7 in July from 126.2 in May 2025.

 

The share of rural households expecting a decline in prices and inflation for the year ahead increased in the July survey round. Current inflation perception among rural households declined from 6.3 per cent in May 2025 to 5.8 per cent in July 2025, while year-ahead inflation expectations fell sharply from 8.9 per cent in May to 7.9 per cent in July.