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Rural Consumer Confidence Drops in RBI Survey Amid Rising Inflation Concerns
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Moneycontrol•11-10-2026, 22:32
Rural Consumer Confidence Drops in RBI Survey Amid Rising Inflation Concerns
- •Consumer confidence among rural and semi-urban households weakened in September 2026 due to growing inflation concerns.
- •The Current Situation Index dropped to 90.6 with declining sentiment across most parameters except spending.
- •The Future Expectations Index stayed in the optimistic zone at 112.8, though it declined from the previous survey.
- •Current inflation perceptions increased by 70 basis points to 6.8 percent, while year-ahead expectations rose 50 basis points to 7.9 percent.
- •The RBI survey covered 8,799 respondents across rural and semi-urban areas in Indian states and Union Territories.
Key Questions Answered
Rural consumer confidence weakened in September 2026 primarily due to mounting concerns over rising inflation, which weighed on current economic sentiments across most indicators except spending.
Despite a decline in current sentiment, rural households remained optimistic about the year ahead, with the Future Expectations Index easing slightly to 112.8.
Current inflation perceptions among rural households increased by 70 basis points to 6.8%, while expectations for inflation over the next year rose by 50 basis points to 7.9%.
