Tomato to fuel: Inflation batters India's middle class families


New Delhi, Nov 25 (IANS): From daily essentials like tomatoes, milk as well as edible oils to transport fuels, rising prices have hampered the financial health of ordinary middle class families in India.

The trend has not only hurt the economically weaker section of the society but has lately been cited to impact the savings rate of the well-off. The biggest impact of inflation is that it affects the purchasing power of the fixed income groups as they can buy less compared to what they were buying earlier.

However, even as consumer price-based inflationary pressure has eased lately on a macro level, it is still high enough to hamper the financial health of any middle class Indian family.

Notably, the CPI-indexed inflation has come down to 6 per cent which is in the comfort zone of the Reserve Bank of India.

But some items of CPI as well as wholesale price inflation (WPI) have shown a drastic increase such as transport fuel prices.

Significantly, any rise in fuel costs bumps-up prices of nearly all the essential items because of a second-round effect. A rise in fuel rates typically impacts overall freight and transportation costs.

Rahul Kumar, 28, who commutes to work in Noida on his two-wheeler, says that the rise in petrol prices exhausts his monthly income rather help him accumulate his savings.

"The rise in petrol prices to above Rs 100 per litre, of tomatoes at Rs 80 per kg, besides ever rising rents could not have come at a worse time since we are already having pay cuts," he said.

"The high spend on petrol due to exorbitant prices itself depletes my income. There has been no savings or investments for at least the last two years."

Similarly, Chabilal Das, a middle-aged daily essential supplier in Noida, also expressed concerns about the rise in prices.

"My income has gone down drastically post pandemic as many few people working in formal sectors have returned to the city as they have work from home options. They are my target customers. How will I pay my EMIs now, that has now become my biggest headache," Das said.

Anil Kumar, 40, a Delhi-based cab driver, said rising fuel prices have hurt his cost-to-income margins.

"Rising fuel prices have hurt us the most as we need to pay EMIs of our vehicle loans, which becomes difficult due to a fall in real income. This pandemic has hit us hard," Kumar said.

Besides, a spike in commodity prices globally inflated the manufactured goods' cost thereby hurting margins along with end users.

Acuite Ratings and Research's Chief Analytical Officer Suman Chowdhury said: "Some categories in the food basket have seen heightened inflation in the current year which includes edible oil, egg, meat and fish and pulses. Further, the sharply increased prices of petrol and diesel have also increased household expenditures with the unlocking of the economy."

"However, it needs to be mentioned that the higher retail fuel prices have got offset to an extent as many salaried employees still have the flexibility to work from home. Going ahead, there is a risk that as the economy continues to unlock and demand for contact intensive services such as hospitality and leisure increases, the inflation in services may see a surge."

Chowdhury sees India's headline inflation at 5.5 per cent for overall FY22 fiscal, and at 6 per cent in particular for Q4FY22.

AMRG and Associates Senior Partner Rajat Mohan said: "The negative effects include impeding purchasing power, inequality in income distribution increases, it negatively impacts the export income as the export prices increases; leading to falling in foreign demand, elevated interest rates in the long run and reduction in the savings rate."

"The energy sector, food processing sector, goods and commodities sector, automobile industries, real estate sector continuously agitate with inflation predisposing middle-class families to financial crisis and instability."

 

 

 

 

 

  

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Comment on this article

  • Alfria, Manglore/Mumbai

    Fri, Nov 26 2021

    Who ever think that inflation is high, food items prices are high, petroleum products prices are high unemployment is high for all your problems there is only one solution just chant Har Har Modi, Ghar Ghar Modi all your problems will be solved.

    DisAgree Agree [1] Reply Report Abuse

  • Babanna, Jeppu, Kudla

    Fri, Nov 26 2021

    Those who are supported farmers protest commenting here. Middlemen enjoying in the name of poor farmers . appreciate your doglepan............

    DisAgree [7] Agree [2] Reply Report Abuse

  • kiran, Bangalore

    Fri, Nov 26 2021

    Those who supported protests in 2014 against congress for price rise and inflation are now supporting this government and blaming the farmers. When people eat cowdung this is the result. Right babanna?

    DisAgree Agree [3] Reply Report Abuse

  • Sahil, Mangaluru

    Fri, Nov 26 2021

    Please increase the price of chaddis instead fuel and tomato...

    DisAgree [2] Agree [9] Reply Report Abuse

  • Ganesh M, Mangalore

    Fri, Nov 26 2021

    Have some common sense. Tomato prices are not fixed by the Government. Its is a play of Demand and supply. Supply is short currently because of heavy Rains.

    DisAgree [2] Agree [1] Reply Report Abuse

  • Kumar, Al Khor, Qatar

    Fri, Nov 26 2021

    I am confused what Indian public really need? Indians love farmers but they don't want to pay more for agricultural product. Indians do not like middlemen, but they sit on protest to include middlemen in the system. 🤣🤣

    DisAgree [7] Agree [9] Reply Report Abuse

  • David Pais, Mangalore

    Fri, Nov 26 2021

    do u think da risen prices of tomatoes goes 2 da farmers?! u r naïve in da market. all da risen prices of tomatoes goes 2 middle men & traders.

    DisAgree [1] Agree [8] Reply Report Abuse

  • Ganesh M, Mangalore

    Fri, Nov 26 2021

    One of the objective of the Farm Law was to make the farmer sell directly to Consumer.

    DisAgree [5] Agree [2] Reply Report Abuse

  • Rudolf Rodrigues, Mumbai

    Fri, Nov 26 2021

    Areca, tobacco, and alcohol??

    DisAgree Agree [3] Reply Report Abuse

  • David Pais, Mangalore

    Fri, Nov 26 2021

    😢😢😢😁😁😁ಭಕ್ತರೇ ಪ್ರಧಾನ ಮಂತ್ರಿಗೆ ಟೊಮೇಟೊ ಹೊಡೆಯಬೇಡಿ. ಟೊಮೇಟೊ ಕ್ರಯ ಇನ್ನೂ ಏರುತ್ತೆ.😢😢😢😁😁😁 ನಗುವುದೋ ಅಳುವುದೋ ತಿಳಿಯುವುದಿಲ್ಲ.

    DisAgree [2] Agree [11] Reply Report Abuse

  • Rudolf Rodrigues, Mumbai

    Fri, Nov 26 2021

    When tomato price settles down potato or something else will shoot up so the story is endless.

    DisAgree Agree [7] Reply Report Abuse

  • AD, Mangalore

    Fri, Nov 26 2021

    Go-muthra is the solution for everything so why bother about tomatoes and petrol

    DisAgree [1] Agree [13] Reply Report Abuse

  • Worried Citizen, Mangaluru

    Fri, Nov 26 2021

    And cowdung

    DisAgree [1] Agree [6] Reply Report Abuse

  • Bollu, Mangalore

    Fri, Nov 26 2021

    No problem even if the begging bowl comes to our hands we will vote for our supreme leader. Modi Modi,Modi. LOL

    DisAgree [2] Agree [21] Reply Report Abuse

  • real kujuma, kodial

    Fri, Nov 26 2021

    and the middle class, especially belonging to majority community, though suffers in silence, votes for the changu and mangu just because of Manuvada and casteism and religion has such an profound effect on it...

    DisAgree [5] Agree [21] Reply Report Abuse

  • Jossy Tauro, Mangalore

    Fri, Nov 26 2021

    Here farmers are always the looser. Because of rain all the grown vegetables, rice, corn is gone in the rain. Even when they had good crop they has to sell for cheap rate. Here always the brokers and middlemen are keeping huge margins. Any way our ministers not using tomatto s and onions. They are focusing to earn gold, flats, big big cars...

    DisAgree Agree [15] Reply Report Abuse

  • Rudolf Rodrigues, Mumbai

    Fri, Nov 26 2021

    Now GST on garments & footwear has been increased from 5 to 12%?!

    DisAgree [1] Agree [20] Reply Report Abuse

  • Rehan sheikh, Brahmavar

    Fri, Nov 26 2021

    Achedin. Adani awr ambani ke liye. Black market walo ke liye. Kaladhan walo ke liye.agaya.

    DisAgree Agree [15] Reply Report Abuse

  • Leo D'Souza, Surathkal

    Fri, Nov 26 2021

    Accchhheee din

    DisAgree Agree [9] Reply Report Abuse

  • Richi, India meri jaan

    Fri, Nov 26 2021

    Middle class - tomato saar and buthayi fry, tomato saar and kori sukka ..... Poor class - one tomato bajji used as uppad with ganji for whole day meal ....... Rich class - Heard tomato is good for exfoliating skin let's grind Tomatoes and apply for face ........... One item different standards with hell of a story 😂😂😂 moral grow your own tomatoes at your home garden , plant seed put gobar and water plant will yield in 60 days ab ki baar Tamatar sarkar😋🤣🤣aaà

    DisAgree Agree [15] Reply Report Abuse

  • ca girishkk, m'lore/dxb

    Thu, Nov 25 2021

    if farmers get the good price.., then it is a good thing to happen as it result in wealth distribution and improve the rural people purchasing power....

    DisAgree Agree [8] Reply Report Abuse

  • Ananda N, Mangaluru

    Thu, Nov 25 2021

    How our voters are poisoned communally. We did not vote anyone in inorder to supplu covaxin to the world. We are badly in need of tomatoes and affordable diesel, petrol, gas.

    DisAgree Agree [13] Reply Report Abuse

  • Langoolacharya., Belman / Washington, DC.

    Thu, Nov 25 2021

    Bomma , In addition of 5 KG free rice....give 2 Kg Tomatoes and 1 bottle of Kerosene ......sorry Brandy... to each ration card....power will be yours for ever.... ...Tak...Takk...

    DisAgree Agree [14] Reply Report Abuse

  • Deepak DC`, Mangaluru/Kuwait

    Thu, Nov 25 2021

    Who said India's middle class is battered by inflation? Can't you see parliament house, palace of PM, statues, holy places worth of crores of Rupees are being built comfortably? Please do not make such Desh Drohi comments.

    DisAgree [3] Agree [47] Reply Report Abuse

  • Rahul, Mangalore

    Thu, Nov 25 2021

    Dont worry give 1000 each black money to voter & give some destructive communal comments at the time election everything will be forgotten.

    DisAgree [3] Agree [39] Reply Report Abuse

  • Vijay, Mangalore

    Thu, Nov 25 2021

    Acche din are turning out to be very costly.

    DisAgree [4] Agree [37] Reply Report Abuse

  • Veer, Nagpur

    Thu, Nov 25 2021

    BJP govt never talks about rising prices essential commodities nor it is interested in reducing these prices by reducing fuel prices and GST. On the other hand BJP has become a religious institute teaching and preaching about Dharma, Hindutva, worship, discrimination to people going to temples etc etc for which they were not elected and they have taken oath.

    DisAgree [3] Agree [31] Reply Report Abuse

  • Shiva, Mangalore

    Thu, Nov 25 2021

    Wholesaler price of Tomato will be less than 30 or 40 Rs and blame Modi or the Governments for the price hike of Tomato which is around 100 to 120 Rs. First middle men should stop eating more than 50% which in unjustifiable.People just think how a Vegetable shopkeeper keep big shop with 5-6 employee's and they still don't bother to sell perishable items.These people are the reason why we see such a price hike not Modi nor the Farmer it the middle men who is making all suffer.First we should slap them then the price will reduce.

    DisAgree [47] Agree [5] Reply Report Abuse

  • Joel, Mangalore

    Fri, Nov 26 2021

    BEFORE 2014 Wholesame price of onion was 30 to 40 rupees Congress Govt was responsible for rise in retails price. Crude oil was $170 a barrel congress was responsible for rise in retail price. AFTER 2014 Whole sale price of tomato is 30 to 40 Rupees middleman are making money. wholesale price of crude oil is $70 a barrel middleman is making money. Next time think and vote for a educated PM including your local MP or MLA. When someone comes asking for a vote at your door step ask them a few questions. What is their qualification, Has there been any case registered against them, What is their economic plan for the region. If you keep voting for a Donkey in the name of religion, caste and hatred this is what you get.

    DisAgree Agree [23] Reply Report Abuse

  • Sameer, Mangalore

    Fri, Nov 26 2021

    You comfortably skipped talking about the Petrol price hike. Bahut hui mehangayi ki maar, abki baar Jumla sarkar.

    DisAgree Agree [13] Reply Report Abuse

  • Observer, Mangaluru

    Thu, Nov 25 2021

    Only Modi can save india from economic crisis within few minutes by transferring command into the hands of MMS.

    DisAgree [6] Agree [37] Reply Report Abuse

  • Cynthia, Dk

    Thu, Nov 25 2021

    Think that tomatoes are vrry very bad for health......please dont use

    DisAgree [2] Agree [25] Reply Report Abuse

  • Worried Citizen, Mlr

    Thu, Nov 25 2021

    Any alternative?

    DisAgree [6] Agree [6] Reply Report Abuse

  • Rayan Fernandes, Urwa Mangalore

    Thu, Nov 25 2021

    Tamrind, Vinegar can be added ...

    DisAgree [2] Agree [20] Reply Report Abuse

  • Sameer, Thokkotu

    Fri, Nov 26 2021

    Cynthia ji, by your logic, we should stop wearing clothes as well, as Modiji has increased the price of clothes also. Hahaha. Bhakts cant even walk due ro fuel hike, aa Modiji has increased the price for chappal also. Itna ache din expect nahi kia tha.

    DisAgree [2] Agree [11] Reply Report Abuse

  • Prem Prasad, Mangalore

    Fri, Nov 26 2021

    best solution, shun burqa. govt. will redut.ce g.s.

    DisAgree [1] Agree [2] Reply Report Abuse

  • Cynthia, Dk

    Fri, Nov 26 2021

    Sameer ji.... mind blowing question ji.... Food, clothing and shelter are basic necessities of a human being. There nothing mentioned about chappals, fuel, neerulli, tomatoes....Few years before people were walking barefoot and remained healthy.....One of my friends asked me whats the solution....let all of us grow bimbuli da mara .....Or grow tomato plants in the waste unused plastics/bags/buckets. Rotten Tomatoes are discsrded in large quantity here and there....Lets gather seeds carefully and bring home and plant.... Lets see...tomato ka bhaav uthregaa kya nahii ???

    DisAgree Agree [1] Reply Report Abuse

  • Manohar, Udupi

    Thu, Nov 25 2021

    Middle class is designed to be crushed by the same Middle class who voted................

    DisAgree [3] Agree [43] Reply Report Abuse

  • HENRY MISQUITH, india

    Thu, Nov 25 2021

    Achche din promised by BJPee are here!!

    DisAgree [4] Agree [42] Reply Report Abuse


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