New Delhi [India], October 2 (ANI): Consumer confidence among both urban and rural households showed a slight improvement in September 2025, according to the Reserve Bank of India’s latest report. The findings are based on two separate surveys: one covering 19 major cities and another covering rural and semi-urban areas nationwide.
The Urban Consumer Confidence Survey (UCCS), conducted from August 28 to September 6, 2025, included 6,068 respondents. The survey found that people in cities are feeling marginally better about the present economic situation compared to earlier.
The Current Situation Index (CSI), which measures how households perceive the economy today compared to a year ago, increased by 0.4 points to 96.9 in September. Meanwhile, expectations for the year ahead remain positive. The Future Expectations Index (FEI) increased by 0.3 points to 125.0, indicating that people continue to expect the coming year to be better.
The RBI report noted that households in urban areas expect price and inflationary pressures to decline over the next year, despite remaining somewhat concerned about the current level of prices. Sentiment about earnings has been on a steady path of improvement for the last four survey rounds, while future income expectations are showing a slow but steady increase.
Parallel to this, the Rural Consumer Confidence Survey (RCCS) was conducted between August 28 and September 7, 2025, yielding 8,848 responses collected from across all Indian states and three Union Territories. The survey shows that confidence in villages and small towns also improved, with the Current Situation Index advancing further into the optimistic zone. The Future Expectations Index in rural areas also continued to climb, highlighting optimism about the year ahead.
The RBI report pointed out that fewer rural households now expect prices and inflation to rise over the next year. At the same time, their current perception of inflation edged up slightly by 10 basis points to 5.9 per cent in September, compared to the previous round. However, looking ahead, households expect inflation to ease, with one-year forward expectations moderating by 30 basis points to 7.6 per cent.
Together, the findings indicate that both urban and rural households are cautiously optimistic about economic conditions, with many anticipating improved prospects in the coming year. (ANI)
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