High food inflation has forced the middle and lower income groups to slash their spending by more than half on entertainment, shopping, vacation, according to an Assocham survey.

The survey, conducted in March-April in the four metros and some other cities, suggested that the average monthly expenditure has increased from Rs 2,000 to Rs 6,000 and expenditure on food, as a percentage of monthly household expenditure, has gone up from 40 per cent to 100 per cent.

Consumption of individual food items show a significant reduction as well, particularly in that of rice, wheat, yellow dal, onion, tomato, butter, milk ,sugar and fruits and vegetables, and the number of households consuming milk at least twice a day has also reduced.

The growing food budget has forced households to cut costs in other areas such as healthcare and transportation. Over 75 per cent of the surveyed households now go to government hospitals or doctors instead of private doctors or hospitals. Seventy-eight per cent have decreased spending on eating out, 65 per cent on clothing and 77 per cent on vacations.

Similarly, 49 per cent have decreased their spend on home appliances, 44 per cent on home and personal electronics, 42 per cent on automobiles; and 35 per cent on real estate.

Those belonging to the middle income groups have curtailed expenses on such heads by nearly 65 per cent during the last 6 months due to rise in inflation, interest rates and fuel costs.

With food and education of children eating up most of their incomes, savings are likely to come down heavily, reveals the survey done on 200 employees selected from each city as samples.

The Delhiites topped in curtailing their expenses followed by Mumbai, Ahmedabad, Chandigarh, Kolkata, Chennai and Dehradun, said Mr D.S. Rawat, Secretary-General, Assocham.

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