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Rural households are optimistic about their economic prospects over the next year, although sentiment has declined across most economic indicators amid growing concerns over inflation, according to the Reserve Bank of India's (RBI) latest Rural Consumer Confidence Survey.
Consumer confidence among rural and semi-urban households weakened in September 2026 while inflation perceptions and expectations rose despite households remaining optimistic about the year ahead, according to the Reserve Bank of India's (RBI) latest Rural Consumer Confidence Survey. The survey indicated a moderation in consumer sentiment across most parameters, with spending being the only exception. The Current Situation Index (CSI) has moderated to 90.6 with softening of sentiments in most of the survey parameters, barring spending, the RBI said. As per the survey, rural households are still positive about their economic situation over the next 12 months. Future Expectations Index (FEI) remained in the optimistic zone, although it moderated compared with the previous survey round. The FEI is a forward-looking economic indicator that measures consumer or business optimism regarding future economic conditions over a specific upcoming period. The year ahead outlook as captured by the Future Expectations Index (FEI) remained in the optimistic zone with some easing from the previous survey round to 112.8, it said. The survey also highlighted rising inflation concerns among rural households. Rural households' perception of current inflation rose by 70 basis points to 6.8 per cent, while their inflation expectations for the next year increased by 50 basis points to 7.9 per cent. Current inflation4 perception and year ahead expectation among rural households increased by 70 basis points (bps) and 50 bps to 6.8 per cent and 7.9 per cent, respectively, in this survey round, it said. The RBI released the September 2026 round of its bi-monthly Rural Consumer Confidence Survey, conducted between September 10 and 20. The survey covered 8,799 respondents across rural and semi-urban areas in all Indian states and three major Union Territories. It captures households' perceptions of current economic conditions compared with a year earlier and their expectations for the next year. The survey assesses the general economic situation, employment conditions, overall prices, household income and spending patterns, alongside inflation perceptions and expectations. (ANI)
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