Rising costs affecting purchase decisions: EY

May 12, 2022 12:00 am | Updated 05:43 am IST - NEW DELHI

‘Lower income earners impacted most’

A majority of Indian consumers are bullish about their financial situation in the next one year, but have raised concerns over rising cost of goods and services, which is affecting their purchasing decisions, according to an EY report.

Moreover, uncertainty around managing rising living costs is driving more than 80% in India to save more money, according to the findings of the ninth edition of the EY Future Consumer Index for India.

The Index for India reaffirms the ‘positive outlook’ of the Indian consumers as 77% expect positive changes in the financial situation, in the next one year. This is better than their global counterparts which stand at 48%, EY said in the report.

However, the survey, which was conducted among more than 1,000 Indian consumers in February, “raises concerns over the rising cost of goods and services that is impacting their ability to purchase goods and is affecting their purchasing decisions.”

“Emerging markets are feeling the pinch strongly, with 62% citing ‘affordability’ affecting their choices (South Africa 77%, India 64%, Brazil 63%, China 42%), compared with 45% of respondents from developed markets,” EY said in the report.

In India, this impacts lower-income earners the most (72%), followed by the high-income group at 60%, and the middle-income group at 58%, it said.

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