According to a YouGov study, during the last year, high inflation reduced the disposable income of over 40% of urban Indians, yet the country had one of the smallest declines in comparison to other foreign markets.
In 18 markets throughout the world, 50% of consumers were surveyed, and 50% claimed that excessive inflation has resulted in a net drop in their discretionary income. In urban India, over 25% of the more than 1,000 respondents reported a net rise in their discretionary income, compared to just 14% internationally. The money left over after taxes, housing costs, and gasoline expenditures are known as disposable income.
“In the past 12 months, all 18 countries reported have seen a net decrease in disposable income compared to last year, with parts of Europe and Canada reporting the biggest negative shift. Great Britain had the largest decline in disposable income, with almost two-thirds (65%) of Brits stating theirs had decreased and only 20% of Brits stating it had not changed. Following closely on the downward trajectory are Canada (58%) and France (55%); and Denmark, Poland, and Sweden are all recording a 54% decrease in disposable income. Stable disposable incomes are shown in Hong Kong (42%), Germany (36%), and Spain (35%). Countries where more than 20% experienced an increase in disposable income were India (25%) and UAE (22%) with all other countries increasing at lower levels,” YouGov said in a detailed FMCG-Retail white paper released on Wednesday.
YouGov examined the effects of increasing costs in 18 markets, looking at everything from petrol to daily necessities to electricity. According to the report, there is widespread high inflation and in many nations, prices are growing more quickly than family earnings. Consumers are thus concerned about their money, and as they adjust to this unstable environment, their buying patterns are shifting.
In India, 66% of respondents to a study said they were “worried” about future expenditure. This is a little bit higher than the 62% average for all countries.
“Our data shows that Italy, Poland, and Spain have the highest ratio of concern, with more than three-quarters of consumers worried about the impact of inflation on their spending power. In contrast, Denmark, China, and Sweden are the least worried. In Great Britain, almost the same volume of consumers who saw their spending power decrease in the last year are worried about the 12 months ahead. For most countries (except for Sweden, China, and Denmark), future concern over the impact of inflation on spending outweighs the decline in disposable income in the last 12 months. China is one of the countries with lower rates of inflation which also reflects in lower levels of concern about the months ahead,” it said.
Consumers are also on the lookout for bargains and discounts as increasing inflation chips away at family finances.
45% of Indians polled said they evaluate costs before making purchases, whether online or in-person or utilize discount coupons; 42% waited for things to go on sale. Nearly 40% of those polled said they use discount retailers to keep costs in check.
