By Vikas Sir, Founder & Senior Faculty – Cosmo Classes | 10 July 2026

The Reserve Bank of India (RBI) launched three household surveys on 9 July 2026 to serve as inputs for its monetary policy formulation. The three surveys are the July 2026 round of the Inflation Expectations Survey of Households, the Rural Consumer Confidence Survey, and the Urban Consumer Confidence Survey. Their results feed into the deliberations of the Monetary Policy Committee before its next meeting.

The Reserve Bank of India is the country’s central bank, established on 1 April 1935 under the Reserve Bank of India Act, 1934. Its monetary policy is decided by the Monetary Policy Committee (MPC), a six-member body that sets the policy repo rate and meets at regular intervals under the framework introduced by the amended RBI Act. The RBI follows a flexible inflation targeting regime, in which it aims to keep retail (CPI) inflation at 4% within a band of +/- 2%, and household expectations therefore feed directly into this decision-making.

The Inflation Expectations Survey of Households (IESH) collects subjective views on price movements and inflation, and the July 2026 round covers 19 cities, capturing household expectations on current inflation and near-term price changes. Because inflation is influenced not only by actual prices but also by what people expect prices to do, these expectations are an important forward-looking indicator for the central bank.

The Rural Consumer Confidence Survey (RCCS) gathers current perceptions and one-year-ahead expectations from households in rural and semi-urban areas across 31 States and Union Territories, covering the general economic situation, employment, prices, income and spending. The Urban Consumer Confidence Survey (UCCS) collects qualitative responses from households in 19 cities - including Ahmedabad, Bengaluru, Chennai, Delhi and Mumbai - on similar parameters. Together these surveys give the RBI a real-time reading of consumer sentiment. The next MPC meeting is scheduled for 3 to 5 August 2026, and the survey findings will be used as inputs on inflation expectations and consumer confidence ahead of that meeting.

Exam Facts

▶ The RBI was established on 1 April 1935 under the RBI Act, 1934.

▶ The Monetary Policy Committee (MPC) has six members.

▶ The main policy rate is the policy repo rate.

▶ India follows flexible inflation targeting: CPI inflation 4% +/- 2%.

▶ The three surveys: Inflation Expectations, Rural Consumer Confidence, Urban Consumer Confidence.

▶ The Urban survey covers 19 cities; the Rural survey covers 31 States/UTs.

▶ The next MPC meeting: 3-5 August 2026.

Practice Set (10 Questions)

Q1. How many household surveys did the RBI launch on 9 July 2026?
A. Two
B. Three
C. Four
D. Five

Show Answer

Answer: B – Three.

Q2. The Reserve Bank of India was established in which year?
A. 1935
B. 1949
C. 1955
D. 1969

Show Answer

Answer: A – 1935 (1 April 1935).

Q3. The RBI was established under which Act?
A. Banking Regulation Act, 1949
B. Reserve Bank of India Act, 1934
C. Companies Act, 1956
D. FEMA, 1999

Show Answer

Answer: B – Reserve Bank of India Act, 1934.

Q4. How many members does the Monetary Policy Committee have?
A. Four
B. Five
C. Six
D. Seven

Show Answer

Answer: C – Six.

Q5. The main policy rate set by the RBI is the:
A. Bank rate
B. Policy repo rate
C. MSF rate
D. Base rate

Show Answer

Answer: B – Policy repo rate.

Q6. Under flexible inflation targeting, India's CPI inflation target is:
A. 2% +/- 2%
B. 4% +/- 2%
C. 5% +/- 1%
D. 6% +/- 2%

Show Answer

Answer: B – 4% +/- 2%.

Q7. Which of the following is NOT one of the three surveys launched?
A. Inflation Expectations Survey
B. Rural Consumer Confidence Survey
C. Urban Consumer Confidence Survey
D. Business Expectations Survey

Show Answer

Answer: D – Business Expectations Survey.

Q8. The Urban Consumer Confidence Survey covers how many cities?
A. 10
B. 19
C. 25
D. 31

Show Answer

Answer: B – 19 cities.

Q9. The Rural Consumer Confidence Survey covers households across:
A. 19 cities
B. 31 States and UTs
C. 10 States
D. All districts

Show Answer

Answer: B – 31 States and Union Territories.

Q10. The next MPC meeting is scheduled for:
A. 1-3 July 2026
B. 3-5 August 2026
C. 1-3 September 2026
D. 5-7 October 2026

Show Answer

Answer: B – 3 to 5 August 2026.

UPSC / RPSC Relevance

  • UPSC Prelims: Economy & Current Affairs (RBI, MPC, monetary policy, inflation targeting).
  • UPSC Mains – GS Paper III: Indian Economy - monetary policy, inflation, and the role of the central bank.
  • RPSC (RAS) Prelims & Mains: Indian Economy & banking - RBI functions, monetary policy and inflation management.

UPSC Mains Descriptive Question

Q. Explain how household surveys on inflation expectations and consumer confidence assist the RBI in formulating monetary policy under the flexible inflation targeting framework. (250 words, 15 marks)

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