Urban customers fear about their income.

• Urban consumers remain optimistic about job opportunities, but pessimistic about income levels.

• Despite job availability, income growth has stagnated, especially in rural areas.

• Majority of urban consumers report rising commodity prices, leading to increased spending.

• This trend has led to a greater share of urban consumers feeling pessimistic about the overall economic situation of the country.

• A Reserve Bank of India (RBI) survey conducted between March 1 and 10, 2025, shows a reversal in optimism about income levels since the pandemic-related peak pessimism.

• In March 2024, fewer than one in four urban respondents reported any improvement in their income levels.

• A higher proportion of rural respondents expressed pessimism about their income levels compared to urban counterparts.

• Over 90% of urban respondents reported that commodity prices have increased over the past year, influencing spending behavior.

• Despite rising prices leading to higher spending, income levels remain stagnant, suggesting many urban residents may be struggling to make ends meet despite retaining their jobs.