Rising prices a nightmare for Indian households

NEW DELHI: For Indian policymakers and Finance Minister Pranab Mukherjee who view the RBI’s rate hikes as measures to moderate the agricultural supply side constraints driven inflation, here i
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NEW DELHI: For Indian policymakers and Finance Minister Pranab Mukherjee who view the RBI’s rate hikes as measures to moderate the agricultural supply side constraints driven inflation, here is something to ponder about. A survey by Assocham’s Social Development Foundation (ASDF) reveals the nightmare of the Indian middle class in trying to balance household budgets with rocketing prices of essential food items and deteriorating consumption.

Around 55 per cent of lower middle class families have been forced to skip or squeezed their budgets for fresh fruits and vegetables because of skyrocketing prices, reveals. The maximum impact was felt in major cities like Delhi, Mumbai, Ahmedabad, Kolkata, Chennai, Hyderabad and Pune, says the survey which conducted in a period of three months beginning April to June 2011.

During the last three years, the salary of average common man has gone up by 10-15 per cent but on the other side the prices of fruits and vegetables have also gone up by 100-115 per cent. The relatively affordable tomatoes, cabbage cauliflower, lady finger and potatoes, basic ingredients in most Indian meals, are moving away from the middle class family reach as prices continue to soar.

Around 86 per cent of the respondents said that rising food prices have made their life tougher. A middle class family cannot predict their monthly household expenses for the next month because prices are unpredictable. Around 65 per cent of the survey respondents fall under the age bracket of 25-29 years, followed by 30-39 years (26 per cent), 40-49 years (16 per cent), 50-59years (2 per cent) and 60-65 years.  Rising inflation has forced middle class to curtail spending.

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