Inflation in cost of services more than in merchandise, says survey

Written by Press Trust of India | New Delhi | Updated: Aug 12 2014, 07:40am hrs
The country's middle class is reeling under the impact of spiralling inflation with prices of basic services rising by at least 25% year-on-year outpacing the escalation in cost of merchandise goods, according to a study.

Costs of services such as education including coaching, health, transport, servicing of personal vehicles, personal care services are increasing at a much higher pace (as compared to the WPI and CPI), pinching an average middle class family at least 25% more year-on-year," the study said.

The study by industry body Assocham covered essential services like transportation, education and healthcare.

High costs would affect sectors like IT (information technology), banking, healthcare and education.

Analysing the cost of healthcare, the study estimated that the doctors' fee, cost of tests and hospitalisation charges have gone up 70-100% during the past 5 years.