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RBI consumer confidence survey: CSI slips, inflation expectations at 10%

8 October 20261 min read
BANKING & FINANCERBI consumerconfidence survey:CSI slips, inflationexpectations at 10%8 October 2026safalsetu.com

Why in the news

On 7 October 2026 the RBI published its forward-looking surveys along with the monetary policy. They show weaker consumer sentiment and sharply higher household inflation expectations.

Key facts

  • Surveys released: UCCS, IESH and RCCS (September 2026), Survey of Professional Forecasters (102nd round), OBICUS (Q1:2026-27), Industrial Outlook Survey, Bank Lending Survey and Services and Infrastructure Outlook Survey (Q2:2026-27).
  • The urban survey was conducted from 10 to 20 September with 6,054 respondents in 19 major cities.
  • 54.5% of urban respondents said economic conditions had worsened over the past year, against 50.5% in July.
  • The urban CSI stays below the neutral mark of 100, while the FEI stays above it, signalling optimism about the future.
IndicatorJuly 2026September 2026
Urban CSI88.387.9
Urban FEI115.3113.5
Rural CSI91.790.6
Rural FEI113.6112.8
Current inflation perception (median)7.8%8.4%
3-month-ahead expectation7.9%9.9%

The one-year-ahead expectation rose to 10% from 8.6% earlier in 2026. The rural CSI declined for a sixth consecutive round.

About the surveys

The Consumer Confidence Survey gives two indices: the Current Situation Index (CSI) and the Future Expectations Index (FEI). A reading above 100 means optimism and below 100 means pessimism. The Inflation Expectations Survey of Households (IESH) tracks households’ price perceptions and expectations, which feed into monetary policy decisions.

Exam angle

  • Know the abbreviations: CSI, FEI, UCCS, RCCS, IESH.
  • 100 is the neutral level for confidence indices.
  • Key figures: urban CSI 87.9, FEI 113.5, one-year inflation expectation 10%.

Test yourself

1. What was the urban Current Situation Index in RBI's September 2026 consumer confidence survey?

Urban CSI fell to 87.9 in September 2026 from 88.3 in July.

2. What was households' median one-year-ahead inflation expectation in RBI's September 2026 IESH?

The one-year-ahead expectation rose to 10% from 8.6% earlier in 2026.

3. How many respondents did RBI's September 2026 Urban Consumer Confidence Survey cover?

The urban survey covered 6,054 respondents across 19 major cities.

Sources: RBI, Business Standard, ANI