RBI Launches 3 Key Surveys for Monetary Policy Input

To fine-tune India’s monetary policy based on real-time household sentiments, the RBI has initiated three surveys: the Inflation Expectations Survey of Households (IESH), the Urban Consumer Confidence Survey (UCCS), and the Rural Consumer Confidence Survey (RCCS). These tools are vital for assessing inflation trends, consumer confidence, and economic sentiment in both urban and rural India, helping the central bank make informed decisions.

Why in the News?

On April 29, 2025, the Reserve Bank of India (RBI) launched three important consumer surveys aimed at gathering public perception on inflation, employment, income, and overall economic confidence. The data from these surveys will serve as crucial inputs for the RBI’s upcoming Monetary Policy Committee (MPC) meeting scheduled from June 4–6, 2025.

1. Inflation Expectations Survey of Households (IESH)

• Purpose: Gathers subjective views on future inflation trends based on household consumption.
• Coverage: Conducted across 19 major Indian cities.
• Focus: 3-month and 1-year ahead inflation outlooks.

2. Urban Consumer Confidence Survey (UCCS)

Respondents: Urban households across the same 19 cities.

Focus Areas

• General economic situation
• Employment
• Price levels
• Income and spending patterns
• Nature: Qualitative survey based on consumer sentiments.

3. Rural Consumer Confidence Survey (RCCS)

• Coverage: 31 states/UTs in rural and semi-urban areas.
• Purpose: Measures current sentiment and expectations for the next year regarding,
• Employment
• Economic conditions
• Income levels
• Expenditure plans

Common Goals

• Help Monetary Policy Committee (MPC) gauge economic conditions.
• Provide data-driven inputs for interest rate decisions and inflation control.

Periodicity

• Part of regular bi-monthly surveys conducted before MPC meetings (6 per financial year).