Consumer Confidence Survey(CCS)

The Reserve Bank of India (RBI) conducted a survey, Consumer Confidence Survey, from November 2-11, 2024, indicating concerns about the economy, employment, income, and spending. Expectations for rising inflation further contribute to this sentiment.

Survey Overview

The RBI’s survey gathered insights from 19 major cities and focused on consumer perceptions regarding the economy, jobs, inflation, income, and spending. The survey assessed both current views and future expectations.

Current Situation Index (CSI)

The CSI experienced a decrease of 0.7 points, falling to 94 in November 2024. This is a decline from 94.7 in September 2024. The drop reflects weaker sentiments about the economy, despite stable household spending.

Future Expectations Index (FEI)

The FEI showed a slight improvement, rising by 0.5 points to 121.9. This indicates a degree of optimism for the upcoming year. Consumers anticipate increased spending on essential and non-essential items.

Current inflation perception rose to 8.4%, an increase of 0.3% from the last survey. Although expectations for inflation over the next three months decreased slightly to 9.1%, the one-year outlook rose to 10.1%.

RBI’s Monetary Policy Update

On December 6, the RBI updated its inflation forecast for the financial year 2025. The new estimate is 4.8%, up from the previous 4.5%. The forecast for the third and fourth quarters of FY2025 was also increased.

Increased expectations for rising prices are linked to higher food and housing costs. More consumers foresee inflation impacting their purchasing power in the coming year.

GKToday Facts for Exams:

1. Current Situation Index (CSI) The CSI measures consumer sentiment regarding the economy. A decrease indicates growing pessimism. It dropped to 94 in November 2024, reflecting economic concerns.
2. Future Expectations Index (FEI) The FEI gauges consumer optimism about future economic conditions. It rose to 121.9, suggesting improved expectations. Consumers anticipate increased spending on essentials and non-essentials.
3. Reserve Bank of India (RBI) The RBI is India’s central banking institution. It regulates monetary policy and manages inflation. It raised its inflation forecast for FY2025 to 4.8% on December 6.
4. Inflation Perception Current inflation perception rose to 8.4%. This reflects consumer concerns about rising prices. Expectations for inflation over the next year increased to 10.1%, impacting purchasing power.

Month: Current Affairs - December, 2024

Category: Economy & Banking Current Affairs