Consumers Remain Pessimistic In November, Shows RBI Survey

Consumer confidence in India improved slightly from a record low but citizens remained pessimistic over the economic situation, employment, price and income, according to a survey by the central bank.

The current situation index rose to 52.3 in November from 49.9 in September, a record low, the Reserve Bank of India’s consumer confidence survey showed. An index value below 100 represents pessimism, while a reading above 100 signals optimism.

The future expectations index, however, remained flat.

Inflation Expectations Ease

The current inflation expectations of households fell to 8.8% in November from 9.8% in September. Median inflation expectations over three-month and one-year horizons stood at 10.1%, remaining elevated, according to the RBI’s inflation expectations survey of households.

More households expect general prices to rise in the next three months and one-year ahead periods but the share of respondents expecting higher prices for non-food products came down marginally, the survey said.

Related Coverage: