Over 70% of the country's middle and lower income families will be forced to cut spendings on festival in order to meet their monthly expenses first
Mumbai: Almost 70% 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, reports PTI quoting 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.
Soaring vegetables prices pushed up the retail inflation in August to 10.03%, up from 9.86% 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% 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% people would spend more if discounts were offered.
"Over 78% of the respondents said that if they plan to spend higher, discounts will be the incentives for them," it said.
Over 68% of the respondents said they will spend 3% on gold items, 27% on sweets and clothes, 9% on vehicles, 8% on gifts, food and drinks, 12% on renovating the house and the rest 8% on electronics, the study added.