Over 86% Participants Say Prices Have Gone Up: RBI Survey
According to the Reserve Bank of India’s (RBI) Consumer Confidence Survey, the findings of which were unveiled in October 2019, the economic situation of the country might be deteriorating.
The survey reveals that the consumer confidence has weakened, with the current situation index and the future expectations index both recording a decline. The survey gauges how Indians feel about the general economic situation, employment, prices and their own income and spending cycles. Participants from 13 Indian cities, including Ahmedabad, Bengaluru, Bhopal, Chennai, Delhi, Guwahati, Hyderabad, Jaipur, Kolkata, Lucknow, Patna, Trivandrum and Mumbai took part in the survey.
Economic situation: In September 2019, 33.5 per cent of the participants said that the economic situation had improved while 18.6 per cent said that the situation was just the same. Another 47.9 per cent said that the situation had worsened. In March this year, 46.2 per cent said that the situation had improved while 32.5 per cent said that it had worsened. On the other hand, 53.2 per cent participants said that they expected the situation to become better than before.
Prices: In September 2019, 86.1 per cent participants said that prices had increased while only 10.6 per cent said that prices remained the same. Only 3.3 per cent of these participants said that the prices had decreased. As for the future, 75.9 per cent believe prices will continue to go up while only 10.3 per cent are hopeful that prices might go down next year. About 13.8 per cent say that the prices might remain the same.
How Indians feel about the way prices are moving is an important indicator in determining real estate trends. Over the past few years, owing to high property prices, unsold inventory has been stacked up for a long time. Improved affordability could trigger fresh demand among consumers.
Income: More people feel their incomes remained the same when compared to last year. As against 28.3 per cent participants in September 2018, only 25 per cent of the participants said that their income improved by September 2019. However, in both these years, the number of participants who said that their income remained the same was the majority, that is 48.3 per cent of the participants. This year, about 53 per cent of the participants said that they were hopeful that their income would go up as against 37.4 per cent who said it would remain the same.
Inflation: In September 2018, 80.8 per cent participants said they noticed inflation in commodity pricing. A year on, 74.2 per cent participants said that inflation had increased. About 19.5 per cent say that it had remained the same between 2018 and 2019, but 77.9 per cent say that it will go up in the next one year.
Spending: Rising inflation levels have led to an increase in spending, say 74.1 per cent participants while 22 per cent feel it has remained the same. Only 3.8 per cent people feel that spending has decreased.
Do note that 83.8 per cent people feel that spending has gone up for essential items while 29.9 per cent people feel that spending on non-essential items has increased in September 2019. About 83 per cent participants are of the opinion that spending on essential items will continue to increase even in the next year.