A 11-Year High of 55% Urban Residents Report Stagnant Income in 2025

Over 80% of Urban Consures Said Spending on Essential Items Has Increased. , Photo Credit: Staff

Urban Consures in India Began the New Year With Both Hope and Concern. On the one hand, India’s retail inflation edited to a five-month low of 4.31% in January, providing some reliable to consumers by reducing the pressure On the other, worms about the employment Scenario Continued to Weigh on Them.

Income Levels too has been stagnant – in January, 55% of urban consumers reported that their income levels had remained unchanged unchanged compared to the same period last year. This is the highest such share in Nearly 11 years.

As Concerns Over Stagnant Income Leves overshadowed any optimism about reduced expenses, a growing share of urban consucers remained pessimist about the broader Economic Outlook as the NEW YEAR Began, Says the Reserve Bank of India’s Consumer Confidence Survey, which was conducted across 19 Major Cities in January. It covered 6,081 Respondents, of which 52.4% was women.

Chart 1 shows the share of respondents who said that the pris of commodities had increased/decreased/styed the same in January 2025 Compared to a year.

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The share of Respondents who are reported an increase in price in January this year (93%) was the lowest since july last year. Around 1% of the Respondents said that pris Had declined, which has been the case the case the Pandemic. An increase share said that prices had controlmed to remain the same.

Chart 2 shows the share of respondents (%) who said that spending on essential items Increased/decreased/styed only

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The 87.6% who said that spending on essential items had increased was the lowest since september 2024. Trend. Close to 11% felt that it had reminded the same.

Chart 3 shows the share of respondents (%) who said that spending on non -SENIL ITEMS Increased/Decreased/styed the same

There was a slight increase in the share of Respondents who reported that their spending on non-working The share of that that who stated that their spending has increased declined marginally in January 2025.

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Overall, on the spending front, conditions have slightly improved or have at least not deteriorated further, as reflected in charts 1, 2, and 3.

Chart 4 shows the share of respondents (%) who said that their income levels increase/decreased/styed the same

The share of respondents who are reported that their income levels had remained unchanged compared to a year ago Reached a record high in janury. There was a decrease in the share of responses who indicated a decline or an increase in their income.

Chart 5 shows the share of respondents (%) who said that job options improved/Worsned/styed the same

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About 42.7% reported a decline in job options compared to a year ago. Following the sharp drop in the employment sentiment during the pandemic, there had ben a steady recovery since, with an increase share of Respondents Reporting Improved Job Opportunities. However, this trend revered in mid-2024, as pessimism about the job market began to grow. This pessimism has deepened further in the current year.

Charts 4 and 5 Reveal Growing Challenges on the Income Front. Job Opportunities are out by scarce, and those who are employed are grappling with stagnant income levels, highlighting the mounting the mounting financial pressures faced by URBAN Consumors.

Chart 6 | Share of Respondents (%) Who Said That General Economic Situation Improved/Worsned/Stayed The Same

Pessimism over Stagnant Income Levels has a significant impact on consumers, with 43% of them stating that the overall economic situations haad worsned in JanuaryPared to the Same Period Last Year. This is the highest such share in at least a year (chart 6).

Also read: Confidence About Economy Declines after Consistent Recovery