Indian consumers expects a rise in spending over the next one year, with an increase in both essential and non-essential items, according to the latest survey of the Reserve Bank of India (RBI). Consumer confidence for the current period paused on its uptrend as sentiments on all parameters, except spending, recorded some moderations in the latest survey round, the RBI’s Consumer Confidence Survey (CCS) showed. The current situation index (CSI) moderated to 97.1 in May 2024 from 98.5 two months ago. “For the year ahead, consumer confidence remained at an elevated level in the optimistic terrain though it declined, albeit marginally, due to relatively tempered sentiments on the general economic situation and employment prospects,” the survey showed. The future expectations index (FEI) stood at 124.8 in May 2024 (125.2 in the previous survey round). CSI and FEI are compiled on the basis of net responses on the economic situation, income, spending, employment and the price level for the current period (as compared with one year ago) and a year ahead, respectively. The survey was conducted during May 2-11, 2024, covering 6,083 respondents. Separately, another survey by the RBI showed that households’ inflation expectations for the three months and one year ahead periods increased by 20 basis points (bps) and 10 bps, respectively to 9.2 per cent and 9.9 per cent, respectively. One basis point is one-hundredth of a percentage point. Their perception on current inflation, however, moderated by 10 bps and stood at 8 per cent, the latest round of the RBI’s Households’ Inflation Expectations showed. Higher share of respondents expected prices and inflation to rise for all major product groups over the next three months as well as one-year periods. At the aggregate level, female respondents had marginally lower inflation assessment and expectations than their male counterparts. The survey was conducted during May 2-11, 2024 in 19 major cities, with responses from 5,943 urban households. Female respondents accounted for 52.6 per cent of this sample, the RBI said.
