Due to high food inflation, middle and lower income groups are forced to slash 65% of spending on entertainment, shopping, vacations, electronics, automobiles, real estate and eating out to manage their monthly household budgets, according to a survey by apex industry chamber Assocham.

Middle Income Group (MIG) has curtailed its spendings on such heads by nearly 65% during the last 6 months due to rise in inflation, interest rates and fuel costs. With food and education of children are eating up most of their incomes, the saving is likely to come down heavily, reveals the survey.

The survey was conducted in a period of two months beginning March to April 2012 in major places like Delhi, Mumbai, Kolkata, Chennai, Ahmedabad, Hyderabad, Pune, Chandigarh, Dehradun, etc. A little over 200 employees were selected from each city on an average. Delhi ranks first in curtailing their expenses followed by Mumbai (2nd), Ahmedabad (3rd) Chandigarh (4th), Kolkata (5th), Chennai (6th) and Dehradun (7th), says D S Rawat, secretary general Assocham.

The nationwide survey reveals that food inflation impacted the most consumers in metros and other major cities Vis-?-vis tier-III and semi urban area due to sudden hike in the fruits, vegetables and milk prices. It also adds that the rise in inflation and per capita income was utterly disproportionate.

Around 55% of the survey respondents fall under the age bracket of 20-29 years, followed by 30-39 years (26 % ), 40-49 years (16 %), 50-59 years (2 %) and 60-65 years.

The survey target was employees from 18 broad sectors, with maximum share contributed by employees from IT/ITeS sector (17%). After IT/ITeS sector, contribution of the survey respondents from financial services is 11%. The employees working in engineering and telecom sector contributed 9 % and 8% respectively in the questionnaire. Nearly 6% of the employees belonged from market research/KPO and media background each. Management, FMCG and infra sector employees? share is 5% each, in the total survey.