RBI has released the results of its bi-monthly Rural Consumer Confidence Survey (RCCS) for the first time. This survey is being conducted on regular basis since September 2023. In each round, the survey targets to cover 9,000 rural and semi urban households from all Indian states and three major union territories (UTs). 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 from the households residing in the rural and semi-urban4 areas. This survey also collates information on households' current inflation perception and their expectation for the year ahead.

Rural consumer confidence for the current period has improved in the last two rounds, RBI noted. The Current Situation Index (CSI) has registered an uptick owing to broad-based improvement across all survey parameters in the March 2025 round and crossed the neutral line. The CSI has hit 100.1 in its latest outing, highest since March 2024.

The one-year-ahead outlook, as captured by the Future Expectations Index (FEI), continued to reflect optimism, with further improvement recorded in the latest survey round. The share of rural households anticipating rise in prices and inflation has declined in the current round of survey for both the time horizon. In fact, at 125.9, this index has hit the previous highs hit in March 2024. It also continued to mark a steep improvement after testing 122.4 in July last year.

RBI noted that consequently, households' current perception of inflation eased by 40 basis points to 6.6% in March 2025 compared to the previous round. Their inflation expectations for the year ahead also moderated by 30 basis points to 9.3%.

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