Business Desk, Amar Ujala, New Delhi
Published by: Deepak Chaturvedi
Updated Sat, Nov 13, 2021 12:37 PM M. IST
The Crisil rating agency report has revealed that the rich have been hit the hardest by inflation. Yes, the rich have more problems than the poor because of inflation. The richest 20 percent of the population face higher inflation than the poorest 20 percent of the population.
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This reason came out in the report.
According to the Crisil report, 20 percent of the poorest population in the country spends more on food than on other resources. There has been a decrease in this during October. At the same time, the richest 20 percent of the population spends more money on non-food items, the prices of which have risen. This is why the rich have been hit hard by inflation. If we look at inflation data on Friday, retail inflation has increased in October 2021 compared to September 2021. We report that this retail inflation figure was at a high of 7.6 percent in October 2020.
This is how the rating agency evaluated
The CRISIL rating agency has estimated the average spending pattern in the three income groups using data from NSSO. This included 20 percent of the poor population, 60 percent of the middle class, and 20 percent of the high-income population. The agency then mapped them to current inflation trends to find out which category was affected by inflation. It found that 20 percent of the wealthy population was more affected by inflation than the poorest 20 percent of the population.
Effect of rising oil prices
According to the report, the main reason for the increase in inflation in the urban sector in October is the boom in petroleum products and underlying inflation. Inflation in the urban sector has increased due to the rise in oil, while in the rural sector, the effect of inflation has been reduced due to lower inflation in food. Inflation in rural India has been lower in October than in September.
The inflation rate for the rural rich is 4.4%.
According to the Crisil report, the inflation rate in October for 20 percent of the rural population was 4.4 percent, while for 20 percent of the urban population it was 5 percent. In rural areas, the inflation rate for 60 percent of the middle class population was 4 percent, while for the urban population of 60 percent of the middle class, the inflation rate was 4.9 percent. Apart from this, inflation was 3.9 percent for 20 percent of the poor population in rural areas and 4.9 percent for 20 percent of the poor population in urban areas.