Inflation impact1 min read . Updated: 24 May 2011, 01:23 AM IST
The Morgan Stanley AlphaWise survey aims to understand the impact of inflation on consumption among Indian households on discretionary and non-discretionary expenses, especially food and grocery items. According to the survey, households are likely to cut savings to manage rising inflation. They may respond with a “down-trading" in food items and other staples over the next 12 months and are unlikely to reduce spending on medical, education, lifestyle and transportation.
Also see | Household Price Expectations Across Spending Categories (PDF)
Consumption habits appear alike for urban and rural India in the findings of the survey. The survey findings are based on a sample of 2008 respondents. The survey is representative of the low, medium and medium-high income groups but not representative of the rich and very poor consumers.
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