Mon Dec 16 01:30:00 UTC 2024: ## Soaring Prices Squeeze Indian Consumers: RBI Survey Reveals Plummeting Confidence
**Mumbai, December 16, 2024** – A new Reserve Bank of India (RBI) Consumer Confidence Survey paints a grim picture of the Indian economy, revealing a sharp decline in consumer optimism fueled by rising prices and stagnant income growth. The November 2024 survey, conducted across 19 major cities, shows that a record 88.6% of urban households reported increased spending on essential items – the highest in nine years – while 30% saw a rise in non-essential spending, the highest in five and a half years.
This surge in expenditure is directly linked to inflation, with nearly 95% of respondents citing increased commodity prices compared to the previous year. Conversely, less than 25% reported an income increase, the lowest share in over a year and seven months. This stark contrast indicates that escalating prices, not improved purchasing power, are driving increased spending.
The survey’s findings reveal a significant shift in consumer sentiment. While the first half of 2024 saw a degree of optimism, the second half witnessed a surge in pessimism regarding the overall economic situation. This pessimism mirrors the decline in reported income increases and perceived job opportunities, as reflected in the survey’s data.
The RBI survey highlights the significant impact of inflation on Indian consumers. The overwhelming majority perceive rising prices, leading to increased spending despite stagnant or declining income levels. This, in turn, is dampening consumer confidence and casting a shadow over the country’s economic outlook.
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