Rural consumer confidence has weakened, says RBI

Reserve Bank of India has released the results of May 2026 round of its bi-monthly Rural Consumer Confidence Survey (RCCS). The survey collects current perceptions (vis-'-vis a year ago) and one year ahead expectations of households, on general economic situation, employment scenario, overall price situation, own income and spending, besides information on inflation. The survey was conducted during May 2-11, 2026, covering 8,813 responses in the rural and semi-urban areas across all Indian states and three major UTs. RBI noted that Rural consumer confidence for the current period weakened further; the Current Situation Index (CSI) declined sequentially in previous two rounds. Though in the optimistic zone, the Future Expectations Index (FEI) declined to 119.3 due to worsening conditions across all parameters except price. Inflation perception and year-ahead expectation for rural households increased by 30 bps and 40 bps, reaching to 5.9 per cent and 7.2 per cent, respectively.

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