Inflation impacts budgets for eating out, leisure shopping

Inflation impacts budgets for eating out, leisure shopping
PTI
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First Published: Sun, Aug 03 2008. 02 04 PM IST
Updated: Sun, Aug 03 2008. 02 04 PM IST
New Delhi: The middle-income group has cut expenditure by nearly 49% on entertainment, eating out and leisure shopping due to pocket-pinching inflation, but made no compromise on vices such as tobacco products, an Assocham study said.
The study, based on responses of 3,000 middle and high income groups in cities, spread over 25 days in July, recommended further measures like using car pools, public transport and restricting spendings to essential items.
It found increase in inflation, based on the wholesale-price index, from 7% to above 11% has forced middle-class families to cut their average budget for entertainment, eating-out and fancy shopping from Rs5,000-6,000 a month to less than Rs2,800.
However, inflation could not dent the spirit of the higher income group. An average high-heeled family continues to spend Rs20,000 a month on leisure, including movies and music.
Meanwhile, middle-income males who generally spend Rs400-1,000 a month on tobacco products such as cigarettes, pan masala, gutka have not really cut on this expense.
Also, problems in the family budget did not impact the womenfolks who continue to give business to beauty saloons and cosmetic products, the study said.
It did not specify the income limits for the middle and higher income groups.
“Working population should use their personal vehicles during Sundays only and try to commute to work by pooling cars...” the study recommended, adding youth using cars can shift to two-wheelers to save on fuel.
The study also says the urban youth is depending on discount sales for clothes.
The inflation measured by WPI has sharply gone up from 7% on 22 March 2008 to 11.98% for the week ended 19 July.
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First Published: Sun, Aug 03 2008. 02 04 PM IST