RBI’s Urban Consumer Confidence Survey for July 2025

Current Context: The RBI Urban Consumer Confidence Survey – July 2025, released on August 7, covered 5,592 respondents across 19 major cities.

• The Current Situation Index (CSI) rose to 96.5 (from 95.4 in May), while the Future Expectations Index (FEI) improved to 124.7.
• Sentiment around income, spending, and economic outlook showed modest improvement.
• Non-essential spending turned positive for the first time in months (+0.4), and essential spending remained strong (net: 86.5 current, 86.2 future).
• Inflation concerns eased, but employment sentiment dipped to -6.7, though future job expectations rose to 31.0.

Question:

Q.1 According to the Reserve Bank of India (RBI) survey, the Current Situation Index (CSI) in July 2025 was:
a) 94.8
b) 95.4
c) 96.5
d) 97.2

Answer: c) The CSI, which measures consumers’ perception of the present economic situation, rose from 95.4 in May 2025 to 96.5 in July 2025.