Recent surveys conducted by the Reserve Bank of India (RBI) have indicated a slight dip in Indian consumer confidence regarding the economy, job prospects, and inflation. The findings, based on responses from 5,943 urban households across 19 major cities during May 2-11, 2024, reveal a nuanced sentiment shift.
While consumer confidence remains optimistic overall, there's a noted decline attributed to subdued sentiments regarding the general economic situation and employment prospects.
Expectations of inflation are also on the rise, with households anticipating a 20 basis points increase over the next three months and a 10 bps increase over the next year.
The survey highlights variations in inflation expectations across demographics and occupation categories. Self-employed respondents expressed the highest inflation expectations, while female respondents, who accounted for 52.6% of the sample, exhibited slightly lower inflation assessments compared to their male counterparts.
These findings shed light on the evolving economic perceptions among urban households in India, hinting at potential challenges and adjustments in consumer behaviour in the near future.