Almost 70 per cent of the country’s middle and lower income families will curtail their expenses during this festive season due to high inflation and less job avenues and salary packages,according to a study by Assocham.
“An overwhelming majority of middle and lower income families in the country will be forced to rip their spends this festive season than the last year mainly because of
persistently rising inflation. They have slashed their festive budget to meet their monthly expenses first,” Assocham said in a release issued here.
Soaring vegetables prices pushed up the retail inflation in August to 10.03 per cent,up from 9.86 per cent in July.
But,the double digit food inflation and higher cost of borrowing did not affect the high income group,it said.
The study finds that last year,middle and lower middle income families,on an average,spent nearly 29 percent of their salary during festive season on shopping.
However,if incentive of discount is provided during the festive season,customers would spend more.
The survey,conducted in Delhi,Mumbai,Kolkata,Chennai,Ahemdabad,Hyderabad,Pune,Chandigarh and Dehradun,said over 78 per cent people would spend more if discounts were offered.
“Over 78 per cent of the respondents said that if they plan to spend higher,discounts will be the incentives for them,” it said.
Over 68 per cent of the respondents said they will spend 3 per cent on gold items,27 per cent on sweets and clothes,9 per cent on vehicles,8 per cent on gifts,food and
drinks,12 per cent on renovating the house and the rest 8 per cent on electronics,the study added.