Over 95% of Indians reported that growing inflation is directly impacting their daily and monthly expenditure, as per a survey conducted by UserTesting.
UserTesting, a video-based human insight provider, conducted a survey to understand the effects of the rising inflation on Indians spending habits and personal finances.
A host of cost pressures such as rising commodity prices, global supply disruptions, and more has been translated to end consumers in the form of elevated prices for goods and services across the board. Therefore, to meet basic needs, Indians are cutting back on their everyday expenses to meet their basic needs.
As per the survey, about 60% of Indian respondents indicated that they are cutting back on entertainment and leisure activities such as movies, eating out, staycations, etc. Unsurprisingly, the respondents also mentioned minimising personal car travel and opting for public transport to reduce their expenditure on petrol.
The survey also revealed that Indians are facing the brunt of inflation majorly on petrol prices, as mentioned by 100% of the respondents during the survey. With essential grocery items such as bread witnessing a sharp rise in prices, 90% of the respondents have reported that it is becoming a burden to keep up with the inflation storm.
Adding to the trouble, some respondents mentioned not having received any salary appraisals in the past year, leading to a reduction in personal savings for many.
Gig economy takes centre stage amidst rising inflation
As inflation heats up, former motivations for side hustles, such as paying off debt and saving, have been replaced by a more pressing need: making ends meet.
According to the survey, 75% of Indian respondents revealed that they are resorting to secondary sources of income to keep up with the increased cost of living. The popular options that were mentioned included freelancing and trading among other side gigs.
The survey found that on average, 65% of Indians are buying from generic/local brands instead of name brands so as to save money. Stating that most generic brands are now offering the same quality of a product at a cheaper price, more than half of the Indians have shifted their focus on local brands, especially for purchases such as clothes and grocery items that are now being bought from local kirana shops.
