Why households are facing squeeze
The most important parameter for judging any government is the inflation vs. increased incomes. A study was conducted in Maharashtra on the cost of making two thalis in 2019 and 2024. The data used is from Ministry of Consumer affairs and other official channels.
1. The cost of rice for two thalis increased from Rs 4.5/day to Rs.6.4/day, a 42% increase in 5 years. Atta increased from Rs.7.5 to Rs.10.7 (42%); Peas increased from Rs.2.3 to Rs.4.6 (+100%); Garlic increased from Rs.1.1 to Rs.6 (+445%). The list has 14 ingredients in all.
2. The cost of making two thalis a day increased from Rs.46.2 per day to Rs.79.2 per day, a 71% increase in 5 years. On a monthly basis, it increased from Rs.1386 per month to Rs.2377 per month.
3. The average salary of a person in the preceding calendar month from regular wages/salaried employment increased in 5 years from Rs.17189 to Rs.23549, an increase of 37% over 5 years.
4. On an overall basis, the share of making two thalis for a month from regular salary increased from 8.06% in 2019 to 10.1% in 2024, an increase of 25.3% in just 5 years.
Simply put, the government is making us pay 25% more to survive. The Cost of living increased by 71% and has far outrun the growth in our salaries which was only 37%. The realty is stark as we are all poorer in real terms. more
1. The cost of rice for two thalis increased from Rs 4.5/day to Rs.6.4/day, a 42% increase in 5 years. Atta increased from Rs.7.5 to Rs.10.7 (42%); Peas increased from Rs.2.3 to Rs.4.6 (+100%); Garlic increased from Rs.1.1 to Rs.6 (+445%). The list has 14 ingredients in all.
2. The cost of making two thalis a day increased from Rs.46.2 per day to Rs.79.2 per day, a 71% increase in 5 years. On a monthly basis, it increased from Rs.1386 per month to Rs.2377 per month.
3. The average salary of a person in the preceding calendar month from regular wages/salaried employment increased in 5 years from Rs.17189 to Rs.23549, an increase of 37% over 5 years.
4. On an overall basis, the share of making two thalis for a month from regular salary increased from 8.06% in 2019 to 10.1% in 2024, an increase of 25.3% in just 5 years.
Simply put, the government is making us pay 25% more to survive. The Cost of living increased by 71% and has far outrun the growth in our salaries which was only 37%. The realty is stark as we are all poorer in real terms. more
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A developing country like India will have significant inflation for quite a number of years. Usually, increase in income matches the increased spend to bring in some parity. If fair pricing norms for farmers are establised, prices may go up even further. Its usually the middle-class which generally complains the most as they do not get any subsidy or price advantage. However, quantum reforms are needed in this space and most of those reforms may not really prevent price rise. Rather, the aim must be to minimise steep fluctiations and keep the prices moving in a steady way so as not to cause shocks. Subsidies and freebies must reduce while allowing a sustainable price to agriculturists. Industrial produce must be subject to meaningful cost audits to ensure that undue profiteering does not take place. more
May 08
What about Non Pensioner Senior Citizens? Inflation and increasing Medical Expenditures are the biggest burdens on them. more
May 08
Cost of living has increased drastically but the government is doing nothing to help reduce price. All these increase came after COVID-19๐ฆ ๐ท. Middle income people and poor suffers. more
May 04
First is this an average prices around the country or just large city?? Per real and proven theory of economics should be applied by the government and get our of the way to create free economy. Government is never the solution but creates more problems. 1) get the middlemen out of the food business who control food prices. Why not real farmers co-ops that sell to stores and public. That will eliminate the extra cost to public. 2) Get the stupid regulations and control by the government. 3) High taxes are bad all around but people of India keep asking government to give them so called free stuff that is paid by taxes. more
May 02
People talk of Real Issues but no body specifies these. To my mind real issue is increasing population and limited availability of resources. So this trend of increase in prices will continue as long as population goes on increasing. more
May 02
This is an economically debunked theory and had been pushed by climate hoax. The inflation is not caused by population grown. more
May 02
