RBI survey shows urban and rural consumer confidence edges up in September 2025

Urban and rural households demonstrated modest gains in consumer sentiment during September 2025, as revealed in the Reserve Bank of India’s most recent findings.

This analysis stems from dual studies: one spanning 19 major cities and another examining rural and semi-urban regions countrywide. The Urban Consumer Confidence Survey (UCCS), carried out between August 28 and September 6, 2025, polled 6,068 urban residents. The study indicated marginally more positive perceptions of current economic conditions compared to prior periods. The Current Situation Index (CSI) – tracking household views on present economic circumstances relative to the previous year – rose 0.4 points to reach 96.9.

Prospects for the coming year maintained their positive trajectory. The Future Expectations Index (FEI) climbed 0.3 points to 125.0, reflecting sustained optimism about future economic improvements. The central bank’s report stated that urban populations anticipate reduced inflationary pressures during the next twelve months, despite retaining some worries about current price levels. Sentiment regarding earnings has gradually strengthened through four consecutive survey cycles, while expected income growth shows consistent incremental gains.

Simultaneously, the Rural Consumer Confidence Survey (RCCS) gathered 8,848 responses nationwide from August 28 to September 7, 2025, covering all states and three Union Territories. Rural confidence likewise gained ground, with the Current Situation Index moving deeper into positive territory. The rural Future Expectations Index similarly progressed, underscoring hopefulness about forthcoming economic conditions.

Researchers highlighted a reduction in rural households anticipating price increases during the coming year. Current inflation perceptions rose marginally by 10 basis points to 5.9% compared to the last survey round. Forward-looking inflation expectations moderated significantly, however, falling 30 basis points to 7.6% for the next twelve months.

Collectively, these findings suggest measured optimism among both urban and rural populations, with many households forecasting enhanced economic circumstances in the near future.

Published on October 2, 2025