The Reserve Bank of India’s (RBI) latest set of surveys, released with the MPC document, point towards an easing of inflation expectations in rural India, stronger consumer confidence, and continued optimism among businesses, even as credit conditions remain an important factor shaping monetary policy.

According to the September 2025 round of the bi-monthly Rural Consumer Confidence Survey (RCCS), households in rural and semi-urban areas reported a slight uptick in their current perception of inflation, which rose by 10 bps to 5.9 percent compared with the previous round.

However, one-year-ahead inflation expectations softened by 30 bps to 7.6 percent. The rural households’ long-term inflation expectations have been on a sequential decline for the past five rounds of the survey.

The RCC

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