Six In 10 Households Spend Over 20 Per Cent More On Essentials: Survey

A recent survey by LocalCircles has revealed that expenditure on household essentials have increased by 20 per cent over last year for more than 60 per cent of consumers.  The findings come as October retail inflation increased to 6.09 per cent, crossing the Reserve Bank of India’s (RBI’s) upper tolerance limit of 6 per cent for the first time in two years. Food inflation reached 8.94 per cent. Milk prices were raised again on November 12, with Amul and Mother Dairy increasing rates by Rs 2-4 per litre, citing higher input costs.

The survey involved more than 134,000 responses from consumers across 326 districts. Individual questions had different response counts, from 17,749 to 74,311; several allowed multiple selections. The results reflected views of people who participated on the LocalCircles platform.

Essentials Are Taking A Bigger Share

When asked how much more they spent each month on essentials than 12 months earlier, 61 per cent of 74,311 respondents said their outlay had risen by over 20 per cent. Another 18 per cent reported a 15-20 per cent increase, while 13 per cent said the increase was 10-15 per cent. Overall, 92 per cent said their monthly spending had gone up by at least 10 per cent.

The survey asked consumers which items had seen significant price increases. Ghee, butter and edible oils topped the list, cited by 75 per cent of 21,637 respondents. Fresh vegetables came next at 73 per cent, followed by rice, wheat and other cereals at 71 per cent. Milk and dairy products, fresh fruits, and pulses or dals were each named by more than six in 10 respondents.

According to LocalCircles, these were consumers’ reported experiences, rather than a measure of how much each household’s basket had risen. They also pointed to pressure across everyday purchases. October inflation data also showed sharp annual increases in onion, garlic and ginger prices.

Families Cut Back, Including On Food

According to the survey, rising bills are prompting households to trim other spending and adjust food purchases. Among 20,384 respondents asked about changes in consumption, 74 per cent said they were spending less on discretionary items such as eating out, shopping and entertainment. Half said they were buying smaller quantities of essentials.

The survey found that 39 per cent were reducing consumption of milk, dairy products or other nutritious foods, while the same share said they were buying fewer fruits and vegetables. Another 39 per cent said they were using savings or borrowing to manage household expenses. Another 37 per cent said they were switching to cheaper brands or lower-priced alternatives. Respondents could select multiple options.

The survey findings revealed that the squeeze may be extending beyond non-essential spending. Families may first cut restaurant visits or postpone purchases, but smaller food quantities or drawing on savings can leave less room to absorb further increases. The survey did not measure each household’s finances or how long families can sustain these adjustments.

Consumers Seek Government Action

Asked what steps could provide relief, 80 per cent of 17,749 respondents called for action against hoarding and artificial price increases. Seventy-two per cent each wanted closer monitoring of wholesale and retail prices, and action against cartelisation and anti-competitive practices. Seventy per cent supported improving supply chains and lowering transport and distribution costs; 67 per cent favoured reducing taxes and duties on essential food products where applicable.

The government has used buffer stocks and stock limits to manage price spikes in some commodities. Recent steps cited in the survey release include onion sales through government outlets, tighter sugar stock limits and weekly rice stock disclosures. Their effect depends on timely supplies and enforcement.

With consumers cutting back on discretionary spending and food, household relief will depend on whether price pressures ease and supply-side measures reach retail markets.

FAQs

What did the LocalCircles survey find about household spending?
Sixty-one per cent of respondents said they were spending over 20 per cent more on essentials each month than a year earlier.

How are households responding to higher prices?
Many reported cutting discretionary spending or buying smaller quantities of essentials. Some said they were using savings or borrowing to manage expenses.

What action do consumers want from the government?
Respondents most often called for action against hoarding and artificial price increases, stronger price monitoring, and action against cartelisation.