Medical care, education, clothing expenses see rise of single digit year on year: ASSOCHAM
Updated: Nov 17, 2014 12:09:34pm
New Delhi, Nov 17 (KNN) Whether it is your doctor’s fee, education and stationery expenses for your kids, clothing, bedding or footwear or even housing, your bill on these heads has not gone beyond a single digit in percentage terms between October, 2013 and October 2014, reflecting both a sense of relief and squeezing of demand on account of slow economy, an ASSOCHAM study has pointed out.
“The year-on-year increase in the medical care expenses increased by just about 5.56 per cent in October 2014 as compared to the same month last fiscal. For education, including stationery expenses, the price rise has been noted at 7.21 per cent and for personal care effects, it is 6.41 per cent,” an official release said.
Going forward, as there has been a sharp drop in petrol and diesel prices, the inflation on account of important services heads will remain subdued in the next six to eight months, the ASSOCHAM paper noted.
Besides, there are no immediate signs of economic turnaround that could have led to the wage pressure.
“These services, largely used by lower and middle class people have not seen a big rise in prices, though clothing, bedding and footwear segment has shown an increase of 7.57 per cent year on year. The price quotes mostly match the average CPI inflation of 5.52 per cent in October, on an average,” ASSOCHAM Secretary General, D S Rawat said.
According to the study, as the state of economy stayed subdued in the last two years, the middle class people have not really seen any significant rise in their salaries, wages and income from self-run enterprises.
“The tepid income led to demand resistance, though it is hard to cut corners when it comes to medical care, education and housing,” it said.
However, there are heads like household requisites which are highly influenced by the income disposable with the consumers and the supply situation. While supply for such items is not a constraint, they saw squeeze in demand on account of factors such as slow growth in wages, salaries.
The household requisites segment saw a price increase of only 3.16 per cent, much less than the retail inflation of 5.52 per cent.
“Unlike items like food, medicines, the consumers have options to postpone these heads,” the ASSOCHAM paper noted.
“Along with the drop in inflation of merchandise items, the price rise of key services of common consumption has been well control, giving additional comfort level to the Reserve Bank which should now go ahead and cut the key interest rates in the ensuing credit policy review,” said the chamber Secretary General.
The services such as these now claim most of the household expenses, especially among the middle class since the quality and availability of public services in education, health and even transport remains far from satisfactory.
“A great relief can be provided to the consumers if quality of public service improves. It will provide succour to the poor and lower middle class and also improve availability of services which in turn can tame prices overall,” the paper pointed out. (KNN Bureau)
“The year-on-year increase in the medical care expenses increased by just about 5.56 per cent in October 2014 as compared to the same month last fiscal. For education, including stationery expenses, the price rise has been noted at 7.21 per cent and for personal care effects, it is 6.41 per cent,” an official release said.
Going forward, as there has been a sharp drop in petrol and diesel prices, the inflation on account of important services heads will remain subdued in the next six to eight months, the ASSOCHAM paper noted.
Besides, there are no immediate signs of economic turnaround that could have led to the wage pressure.
“These services, largely used by lower and middle class people have not seen a big rise in prices, though clothing, bedding and footwear segment has shown an increase of 7.57 per cent year on year. The price quotes mostly match the average CPI inflation of 5.52 per cent in October, on an average,” ASSOCHAM Secretary General, D S Rawat said.
According to the study, as the state of economy stayed subdued in the last two years, the middle class people have not really seen any significant rise in their salaries, wages and income from self-run enterprises.
“The tepid income led to demand resistance, though it is hard to cut corners when it comes to medical care, education and housing,” it said.
However, there are heads like household requisites which are highly influenced by the income disposable with the consumers and the supply situation. While supply for such items is not a constraint, they saw squeeze in demand on account of factors such as slow growth in wages, salaries.
The household requisites segment saw a price increase of only 3.16 per cent, much less than the retail inflation of 5.52 per cent.
“Unlike items like food, medicines, the consumers have options to postpone these heads,” the ASSOCHAM paper noted.
“Along with the drop in inflation of merchandise items, the price rise of key services of common consumption has been well control, giving additional comfort level to the Reserve Bank which should now go ahead and cut the key interest rates in the ensuing credit policy review,” said the chamber Secretary General.
The services such as these now claim most of the household expenses, especially among the middle class since the quality and availability of public services in education, health and even transport remains far from satisfactory.
“A great relief can be provided to the consumers if quality of public service improves. It will provide succour to the poor and lower middle class and also improve availability of services which in turn can tame prices overall,” the paper pointed out. (KNN Bureau)
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