Impact of Inflation on Common Man

Only available on StudyMode
  • Download(s) : 828
  • Published : September 3, 2012
Open Document
Text Preview

IMPACT OF INFLATION ON CONSUMPTION PATTERN

By
Debdoot Mukherjee, Forline De Fernanddo.X, Nagaraj P, Sarica.S, Dinesh Varma.M, Eveson Chella,
Karin Basha, Parul Mukherjee, R.Jayanandhini, & Pavan

CONTENTS
A. ACKNOWLEDGMENT ………………………………………..3 1. INTRODUCTION
2.1. CONTEXT………………………………………………….4 2. OBJECTIVES……………………………………………………….6 3. SCOPE OF THE RESEARCH……………………………………...6 4. LIMITATIONS OF THE STUDY………………………………….7 5. METHODOLOGY………………………………………………….8 6. REVIEW OF LITERATURE……………………………………….9 7. DATA ANALYSIS

8.2. PRIMARY DATA …………………………………………12 8.3. INFLATION GRAPH …………………………………….19 8. ESTIMATED IMPACT OF INFLATION CONSUMPTION PATTERN
9.4. WHO ARE AT RISK? ..........................................................20 9. FINDINGS AND CONCLUSIONS…………………………………21 10. SURVEY QUESTION………………………………………………22 11. REFERENCES………………………………………………………24 12. APPENDIX…………………………………………………………25

ACKNOWLEDGEMENT

We owe a great many thanks to a great many people who helped and supported us during the project. Our deepest thanks to Lecturer,
Prof. G.SHARADA
The Guide of the project for guiding and correcting various documents of mine with attention and care. She has taken pain to go through the project and make necessary correction as and when needed. I express my thanks to the Director of ITM Chennai, for extending her support. We would also thank Our Institution and my faculty members without whom this project would have been a distant reality. I also extend our heartfelt thanks to our well-wishers.

1. INTRODUCTION
2.1. Context

In India, last two decades have recorded substantial economic growth and improvements in livelihood among urban populations. High rate of development and urbanization results in the increase of middle class. Currently India has 31.4 million middle class households which represent 13 percent of India’s population. The percentage of middle class in the country’s total population will increase to 20.3 percent by 2015 and 37.2 percent by 2025 i.e. the number of middle class households in India is likely to more than double from the 2015-16 levels to 113.8 million households or 547 million individuals. As per the study, which uses 'household income' as the criterion, a family with an annual income between Rs 3.4 lakh to Rs 17 lakh (at 2009-10 price levels) falls in the middle class category. The middle class in low and medium income economies in the world is increasingly demanding higher value agricultural produce and due to supply constraint the price of commodity increases.

Inflation is the persistent rise in the general price level of the commodity. Opinion survey in India reveals that inflation is the most important concern of the middle class people and it badly affects their standard of living and consumption. Inflation in food, by its very nature is the enemy of middle class consumers. These categories of people have to fight every day for their survival in metro cities as the cost of living is very high. Food inflation indicates higher prices of agricultural products. The primary articles contribute to 20.118% and food articles contribute to 14.337 % in Wholesale Price Index as per the WPI series 2004-05.

* Inflation on Food Price Index (April 2004-December 2010)

Source: Ministry of Commerce and Industry

The increase in food prices is not homogeneous. The cereal prices (rice and wheat particularly) have increased quickly since 2006: monthly inflation rate is higher than 5% for wheat and rice (except for few months). The increase in cereal prices was higher than the increase in food prices before the beginning of 2009; after food prices have risen more quickly. In last quarter (from November 2010 to January 2011), wheat price decreased but this...
tracking img