Mumbai: Consumer confidence has increased in July 2022 as compared to the same period in 2021, according to a recent survey released by the Reserve Bank of India (RBI).

In its latest Consumer Confidence Survey (CCS) report, RBI found out that the current situation index (CSI) has improved by 1.4 points from 75.9 in May 2022 to 77.3 in July 2022.

The survey obtained current perceptions (vis-à-vis a year ago) and one year ahead expectations on the general economic situation, employment scenario, overall price situation and own income and spending across 19 major cities.

The RBI noted that consumer confidence continued to recover in successive rounds of the survey after the historic low recorded in July 2021, though it remained in the pessimistic zone; the current situation index (CSI) rose by 1.4 points on account of improved perception of employment, household income, and spending.

The survey also found out that consumers’ perception of the overall price level as well as inflation declined from that in the previous round of the survey. “They expect a further rise in prices, but inflation is expected to moderate marginally over the next year," it said.

In its release, RBI mentioned that consumers expressed optimism about the outlook for the economic situation and overall spending over the next year. However, it was partially countervailed by some weakening in expectations for employment, price level and household income, in relation to the May 2022 round of the survey.

As a result, the future expectations index (FEI) recorded only marginal improvement from 113 in May 2022 to 113.3 in July 2022. Most households reported a rise in their current spending and anticipated that the trend would continue for the year ahead.

It is conducted regularly in 19 major cities like Ahmedabad, Bengaluru, Bhopal, Chennai, Delhi, Guwahati, Hyderabad, Jaipur, Kolkata, Lucknow, Mumbai, Patna, and Thiruvananthapuram, etc.

This survey was conducted from 7 July to 14 July covering 6,083 responses.