Key Points
Consumer incomes have not kept pace with post pandemic inflation, impacting consumption and shrinking demand especially for low end consumer goods, corporates and economists said...
Latest CPI data showed consumer price inflation that averaged 3.7 percent in FY '19 has scaled 6.7 percent in FY23 driven by a sharp rise in food and beverages inflation which accounts for a big chunk of the average Indians consumption basket...
Corporates said city workers who went back to their hometowns during covid in 2020 and returned in 2022 lost incomes and did not regain that spending power owing to inflation..
On an aggregate basis household income has risen by 5-6 percent in real terms over the last decade, he said, but income growth of 50 percent of the work force which comprises the self-employed and a part of unorganised sector has not matched the growth of the salaried class, according to Gupta...
Corporates say the consumer landscape is changing fuelled by a mix of aspirations and encouraging finance packages leading to shift in preferences for premium products and therefore improved profit margins.. Post covid, this sector has been badly hit by either inflationary impact or reduction in purchasing power on account of slowdown in employment, according to a report by Bank of Baroda..
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