Archive · 7 Aug 2025
Consumer Confidence Up, Inflation Expected to Rise: RBI Survey
People in the countryside and cities feel better about the economy.
Inflation, or the rising cost of things, is going down for now.
However, the government thinks prices might go up again in a couple of years.
Banks are also expecting more people to want to borrow money soon.
This is all based on surveys by the Reserve Bank of India, which studies what people and businesses are thinking and doing.
Consumer confidence improved in both rural and urban areas, driven by easing inflation.
RBI survey projects retail inflation to rise to 4.4% in fiscal year 2026-27.
Rural consumer sentiment improved, with expectations for easing inflation.
Urban consumer confidence also increased, with decreased concerns about inflation.
Banks expect stronger loan demand in the second quarter of fiscal year 2025-26.
- Who
- Reserve Bank of India (RBI)
- What
- Consumer confidence in rural and urban areas increased, with expected rise in retail inflation in FY27.
- When
- Consumer confidence measured in July. Inflation expected to rise in 2026-27.
- Where
- Not specified in the article.
- Why
- To monitor and understand consumer and economic trends.
- Retail Inflation Forecast (FY26)
- 3.1%
- Retail Inflation Forecast (FY27)
- 4.4%
- Bank Credit Growth
- 9.8%
