Consumer confidence among both urban and rural households showed a slight improvement in September 2025, according to the latest report from the reserve Bank of India.
The findings are based on two separate surveys: one of 19 major cities and another about rural and semi-urban areas throughout the country. The Urban Consumer Confidence Survey (UCCS), executed from 28 August to 6 September 2025, included 6,068 respondents. The research showed that people in cities feel marginally better about the current economic situation compared to earlier. The current situation index (CSI), which measures how households observe the economy today compared to a year ago, rose by 0.4 points to 96.9 in September.
In the meantime, the expectations of the coming year remain positive. The future expectations -Index (FEI) increased by 0.3 points to 125.0, indicating that people will still expect better in the coming year. The RBI report noted that households in urban areas expect that the price and inflatory pressure will fall the following year, even though they will remain somewhat delivered about the current price level. Sentiment about the income has been on a steady path of improvement for the last four survey rounds, while future income expectations show a slow but steady increase.
Parallel to this, the Rural Consumer Confidence Survey (RCCS) was performed between 28 August and 7 September 2025, with 8,848 answers collected from all Indian states and three trade union areas. The research shows that confidence in villages and small cities also improved, with the current situation index further to the optimistic zone. The future expectations -index in the countryside also continued to climb, which emphasized optimism over the coming year.
The RBI report pointed out that fewer countryside households now expect prices and inflation to rise the following year. At the same time, their current perception of inflation stuck something with 10 basic points to 5.9 percent in September, compared to the previous round. Looking ahead, however, households expect that inflation would alleviate, with expectations modifying with 30 basic points one year ahead to 7.6 percent.
Together, the findings indicate that both urban and rural households are careful optimistic about economic conditions, with many people being anticipating improved prospects in the coming year.
Published on October 2, 2025
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