BackOver 60% urban Indians expect inflation to increase: Survey
While inflation on key commodities has been cooling, the impact of high prices is still being felt by households.
PremiumNew Delhi: Urban Indians foresee inflation to rise further in the next 12-18 months, according to an Ipsos Global Inflation Monitor for the month of November. Consumers also expect interest rates and taxes to soar further.
"At least 65% of urban Indians polled and 69% of global citizens polled foresee inflation to further go up. Further, 58% urban Indians expect interest rates to soar, taxes (56%) and unemployment to further increase in the next one year (59%). On probing the top reasons for price increases, at least 70% of urban Indians polled pinned it down to businesses making excessive profits, interest rate levels in the country (69%) and policies of the national government (69%)," according to findings of the survey released Friday.
While inflation on key commodities has been cooling, the impact of high prices is still being felt by households.
"Interesting new angle emerging for price rise. Marketers often offset the impact of the rising input cost, through the shrinkflation route, by passing on the burden to the consumers, though they have been highly cautious by either retaining the price points by decreasing the grammage or size of the SKU or absorbing the cost. The full impact of global economic slowdown, Ukraine war and Covid-19 pandemic are lower in the pecking order among the top causes of price rise and inflation," Amit Adarkar, CEO, Ipsos India said.
However, inflation notwithstanding, one in two urban Indians expect their standard of living to improve in the next one year. Meanwhile, one in two urban Indians is optimistic about their disposable incomes increasing in the next one year.
Overall, India was the third most optimistic market after Thailand and the UAE. Global citizens were more muted in their optimism, about the standard of living improving and disposable incomes improving.
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