‘Lifestyle’ inflation beats essentials – Times of India


MUMBAI: Lifestyle inflation – where consumers move to higher end products – has outstripped price rise in essential commodities every year since FY18. While lifestyle inflation is a reflection of demand that is usually targeted by policy rates, price increase of essential commodities is more of a supply driven phenomenon, which needs targeted govt intervention.
According to a report by Bank of Baroda’s economics department, from FY18 onwards, there has been an uptick in the lifestyle inflation rate. From 4% in FY18, it has inched up to 6.4% in FY23. During the same period, per capita gross national disposable income had a CAGR of 8.5%.
Compared to FY18, lifestyle items like glassware within utensils saw a rise from 2.8% to 6%, candles increased from 3.1% to 7.1%, and monthly maintenance charges surged from 2.2% to 10.9%. Similarly, motor vehicles rose from 2.4% to 7.7%. Electronic items saw jumps as well, with mobile handsets increasing from 0.3% to 5.9%, and PC/laptop from 1.6% to 9.1%. Clocks/watches rose from 4.9% to 7.9%, while travel goods increased from 1.1% to 3.8%. These shifts reflect growing affordability and aspirations for improved living standards, the report said.

Read original article here

Denial of responsibility! Genx Newz is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – [email protected]. The content will be deleted within 24 hours.

Leave a Comment