Key Points
Earlier, we would save some amount after spending onkiranaand other household expenses but since COVID-19, we have stopped saving given the price rise in food products such as pulses, vegetables and edible oil, she says.. Matkars husband has found another job as an office administrator in the commercial hub of Airoli, and the husband and wife together bring home Rs 40,000 a monthbut she still hasnt been able to replace her gold necklace...
Even though India bounced back from the coronavirus pandemic and spending recovered as the prices of these commodities eased, consumers have still been reeling from the impact of a poor monsoon last year that sent food inflation spiralling...
Farm incomes were already down because of last years poor rains and low crop yields, and now inflation is leaving little money in the hands of rural consumers...
We cannot even think of spending on things like movies or going to town to eat, he says.. An average consumer in rural areas spends about 46.4 percent of their earnings on food, while urban consumers spend 39.2 percent, according to the governments All India Household Consumption Expenditure Survey for 2022-2023, released this February...
The share of food in the consumption basket is higher in rural areas and also for the lower income groups and hence, they feel the pinch more than the other consumer cohorts, says Dipti Deshpande, principal economist at CRISIL, an analytics company that provides ratings, research, risk and policy advisory services...
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