India's consumers flag inflation worries

Even as spending in India on non-essentials has picked up, many consumers are concerned about the rising price of everyday items.

Why it matters

As COVID-19 eases and workplaces reopen, Indian consumers are simultaneously optimistic about their own financial situation and wary of the impact of rising prices that have resulted from pandemic-induced supply chain disruptions and now the war in Ukraine. 

The picture that emerges from the February consumer tracker* conducted by consultancy Deloitte Touche Tohmatsu India suggests that cautious consumers are looking to recover some sense of normality in the short-term while also preparing for a difficult longer-term.

Findings 

• Seven-in-ten (71%) flagged concern over the rising price of everyday purchases.
• Eighty-seven percent of 35-54 year-olds said they were concerned about inflation.
• Six-in-ten (61%) said they are deferring expensive purchases.
• Fifty-nine percent said they are using credit cards to stretch pay cheques. 

BUT

• Three quarters (77%) are optimistic about their financial situation over the next three years.
• Eighty-four percent plan to spend on leisure travel in the next four weeks.
• Seventy-two percent plan to buy a vehicle in the next six months.
• Just over half (54%) have increased savings for the future. 

Key quote

“The first three months of 2022 have been an adventurous roller-coaster ride with Indians witnessing the third wave of covid-19 (Omicron variant), leading to a surge in prices of everyday items, supply chain disruptions, etc. Indian consumers are showing a propensity to save more as the immediate future seems uncertain” – Porus Doctor, partner and consumer industry leader, Deloitte Touche Tohmatsu India.

*India data in the global tracker is weighed for age and gender, but is skewed towards an English-speaking urban population. 

Sourced from Indian Retailer [Image: rupixen.com on Unsplash]