Inflation impacts consumer sentiment, says survey

The survey however discloses consistency in the consumption of essential products representing cautious spending sentiment by consumers.

inflation
Consumption has increased for 20% of families, marking an overall dip by 3% from last month.

High inflation has impacted consumption, with a slight dip witnessed across household products, discretionary products and health products, according to Axis My India, a consumer data intelligence company’s June India Consumer Sentiment Index (CSI).

Media consumption and mobility mirror reduced sentiment in the given month. The survey however discloses consistency in the consumption of essential products representing cautious spending sentiment by consumers.The June net CSI score, calculated by percentage increase minus percentage decrease in sentiment, was down to +10, from +12 last month.

According to the survey, the overall household spending has increased for 61% families which reflects a 5% dip from the last month. However, the net score which was at +58 last month has decreased by -6 to +52 this month. Spending on essentials like personal care and household items has increased for 46% of the families. Spends, however, remain the same for 34% of the families. The net score which was +29 last month has reduced by -3 to +26 this month.

Spends on non-essential and discretionary products like air conditioners, car, refrigerator has increased for 8% of families reflecting a major dip of 6% from last month. Spending nevertheless remains the same for 86% families, reflecting an increase of 6% from last month. The net score which was at +8 the previous month has dipped to +2 this month.

Consumption of health-related items has increased for 36% families, a dip of 2% from last month. Consumption more or less remains the same for 49% of the families, an increase of 2%. The health score which has a negative connotation i.e., the lesser the spends on health items the better the sentiments, has a net score value of -21 this month as compared to -23 last month.

Consumption of media remains the same for 58% of the respondents. Consumption has increased for 20% of families, marking an overall dip by 3% from last month. The overall, net score which was at -2 in the last month is remains same at -2 this month.

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First published on: 02-06-2022 at 08:47 IST
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