Households See High Inflation Even as Confidence Slips, Spending Holds

Households across India still expect inflation to stay elevated even as their confidence in the economy weakens, according to the latest RBI survey. The survey found that despite worries about rising prices, overall household spending has not yet pulled back. Respondents said they intend to keep spending at current levels, showing resilience in both urban and rural areas. The RBI’s confidence index fell compared with its previous reading, signalling growing uncertainty among consumers. Yet the spending‑intent score remained steady, indicating that households are not cutting back on purchases yet.

Context

The RBI conducts regular surveys to gauge price expectations and consumer sentiment, which help shape monetary policy. Persistent inflation expectations can pressure the central bank to consider tighter measures, while steady spending suggests demand remains supportive of growth.