Story continues below this adThe RBI’s latest surveys show that the falling inflation rate has also had a salutary effect on consumer confidence across India. The chart alongside shows how the RBI’s consumer confidence indices for rural and urban consumers have behaved since September 2023. One, consumer confidence has improved across the country over the past few months. Two, the rural consumer confidence index has now been in the positive territory (above 100) since March. In fact, the urban consumer confidence is still below where it was in March last year, in spite of the softening of inflation.