Urban Consumer Sentiment India May 2025 Report

In May 2025, the Reserve Bank of India (RBI) released its latest Urban Consumer Confidence Survey, revealing a detailed picture of the urban consumer sentiment in India.

This data is important not just for economists and policymakers but also for SSC aspirants, especially those preparing for the General Awareness, Economy, and Current Affairs sections.

Let’s understand the findings of the report and what it tells us about the current and future urban consumer sentiment in India.

What Is Urban Consumer Sentiment India?

Urban consumer sentiment in India refers to the overall mood, perception, and confidence of people living in cities about their current economic condition and future expectations.

It reflects how urban households feel about their employment, income, inflation, and spending power.

According to the RBI, the survey captures insights across five parameters:

• Economic situation

• Employment

• Price levels

• Income

• Spending habits

Understanding urban consumer sentiment in India helps us track how confident or concerned city dwellers are about their financial situation.

Key Highlights – May 2025

• The Current Situation Index (CSI) for urban households dropped slightly to 95.4 in May 2025 from 95.5 in March 2025, signaling weak urban consumer sentiment in India.

• A CSI below 100 reflects pessimism, showing that urban consumers are not confident about their present economic conditions.

• The CSI has remained under 100 for more than six years, indicating long-standing challenges in the urban economic mood.

These figures reflect the broader concerns related to urban household confidence and spending patterns in India’s major cities.

Future Sentiment Shows Optimism

Interestingly, the Future Expectations Index (FEI) improved to 123.4 in May 2025—its highest level in a year. This suggests a hopeful shift in urban consumer sentiment in India toward better conditions in the year ahead.

Contributing factors:

• Declining retail and food inflation

• Improved employment expectations

• Positive outlook in urban demand trends 2025

Urban vs Rural Consumer Sentiment

• When compared with rural households, urban consumer sentiment in India remains more subdued. While rural CSI reached a neutral 100.0, urban CSI is still below this threshold.

• A good monsoon and stabilized food prices have helped rural sentiment, but the consumer perception in Indian cities remains cautious.

• Despite inflation at a multi-year low (3.16% headline, 1.78% food), India's urban inflation perception remains elevated due to visible price fluctuations in essentials like fuel and vegetables.

Urban Inflation & Employment Outlook

According to a separate RBI survey:

• Urban inflation perception is at 7.7% (down 10 bps)

• One-year-ahead inflation expectation is 9.5% (down 20 bps)

This shows that urban consumer sentiment in India remains affected by the volatility in price levels, especially in household essentials.

On the employment front, the current perception is negative. However, the future urban employment outlook in India is much more optimistic, contributing positively to urban consumer sentiment in India.

Importance of Urban Consumer Sentiment in India

For those preparing for SSC, understanding the urban consumer sentiment in India is vital. It is frequently featured in:

• Economy-based MCQs

• Current affairs essays

• Interviews or personality tests

Important data to remember:

• Urban CSI: 95.4

• Urban FEI: 123.4

• Survey dates: May 2–11, 2025

• Respondents: 6,090 urban households

Knowing these figures helps SSC aspirants stay ahead in topics related to the RBI urban sentiment index, economic outlook, and city-level consumer behavior in India.

Final Thoughts

The Urban Consumer Sentiment India report by the RBI offers crucial insights into how urban households perceive their economic reality and what they expect for the future.

While current confidence remains low due to concerns around inflation and employment, the rise in future expectations indicates a positive outlook ahead.

For SSC aspirants, understanding these trends is essential to grasp the pulse of India’s economy and prepare effectively for the current affairs and economic awareness sections in the exam.