Expectations Survey
Households see sharp fall in inflation, urban consumer sentiment up, says RBI
This story was originally published at 19:27 IST on 5 December 2025
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MUMBAI – Indian households' perception of current inflation declined sharply in November with price pressures easing in most product groups, according to the Reserve Bank of India's households inflation expectations survey released Friday. Households also expect lower price pressures three months ahead and a year ahead, the survey found.
Households' median perception of current inflation declined 80 basis points from September to 6.6% in November. Their inflation expectations for the next three months and one year moderated by 50 bps and 70 bps, respectively, the RBI said. The RBI conducted the survey during Nov. 1-Nov. 10 in 19 major cities with 6,061 responses.
CPI inflation fell to a record low of 0.25% in October and the RBI Friday lowered its forecast for the current year by 60 bps to 2.0%. "Households reported easing of price and inflationary pressures in most of the product groups, including food products, non-food products, and cost of services for both the time horizons," the central bank said.
In another forward-looking survey, the RBI found consumer confidence in urban areas improved in November with the Current Situation Index rising to 98.4 from 96.9 in September. Urban consumer confidence for the year ahead remained optimistic, indicating continued confidence in outlook.
Consumer confidence remained nearly the same in rural areas with the Current Situation Index at 100.8 in November against 100.9 in September. The year-ahead outlook improved with the Future Expectations Index rising to 128.6 in November from 127.9 in September. End
Reported by Shubham Rana
Edited by Rajeev Pai
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