RBI surveys show rising confidence, softer inflation and steady spending trends in cities and villages

India’s consumer mood showed signs of steady improvement in November, with new data from three Reserve Bank surveys pointing to stronger confidence, easing inflation expectations and a calmer outlook on spending. The findings come from the Urban Consumer Confidence Survey, the Inflation Expectations Survey of Households and the Rural Consumer Confidence Survey, all conducted between 1 and 10 November 2025.

According to the RBI circular, each survey captured people’s views on the economy, jobs, prices, income and spending, offering a broad picture of how households are feeling across both cities and villages.

Urban confidence strengthened as the Current Situation Index (CSI) “improved to 98.4% from 96.9%”, according to the survey, driven by better views on prices and the general economic situation. The circular also noted that the Future Expectations Index (FEI) “remained highly optimistic, increasing by 0.6 points to 125.6”, showing that households continue to feel positive about the year ahead. Sentiments on jobs stayed similar to the previous round, and the report said optimism about future employment “remained fairly strong”.

Price views also shifted in a positive direction. The survey stated that positive sentiments on the current price level and inflation picked up, and households also expect a decline in both price and inflationary pressures over the coming year. However, the easing in price pressures meant that current spending, especially on essentials, “moderated sharply”, according to the circular. While future essential spending is also softening, expectations for non-essential spending have increased slightly, keeping total expected spending steady.

The inflation survey reinforced this trend. According to the survey, households’ perception of current median inflation “declined significantly by 80 bps to 6.6%”, while expectations for the next three months and one year softened by 50 bps and 70 bps to 7.6% and 8.0%. The survey added that fewer respondents now expect prices to rise, and households reported easing inflation across food, non-food and services.

The rural survey showed a similarly steady picture. Rural confidence “remained almost at the same level”, with the CSI staying above the neutral line for three rounds, according to the report. The FEI improved further, and more households now expect prices and inflation to fall. The report noted that current inflation perception “declined significantly by 130 bps to 4.6%”, and expectations for the year ahead fell “by 150 bps to 6.1%”.