Amid the current high inflation environment, the cost of living is set to increase by up to 23 per cent from September 2021 in countries including the US, UK, Germany and India. According to the SBI Ecowrap report, if the household budget or cost of living was Rs 100 across all countries in September 2021, now it has increased by Rs 12 in both the US and India. At the same time, it has increased by Rs 20 in Germany and Rs 23 in the UK.
The report further states that India has performed best in terms of keeping the rise in prices of food and shelter under control. This shows that in September 2021, the cost of food in the whole country was Rs 100, which is now Rs 25 in America, Rs 18 in UK, Rs 33 in Germany and Rs 15 in India.
On the other hand, in terms of shelter prices in September last year the price which was Rs 100 is now Rs 21 in US, Rs 30 in UK, Rs 21 in Germany and Rs 6 in India.
As far as energy prices are concerned, the US fared best as compared to India, UK and Germany. The SBI Ecowrap report shows that if energy prices were at Rs 100 in September 2021, they have now increased by Rs 12 in the US, Rs 93 in the UK, Rs 62 in Germany and Rs 16 in India.
As the global economy continues to wreak havoc through uncertainties, it seems that India has done fairly well in managing the cost of living as compared to other countries, according to SBI Ecowrap.
It further said that the US job market is still quite strong and the US Federal Reserve may have to hike rates a few more times to have a firm grip on the labor market.
“India remains remarkably resilient, with 72 per cent of capital outflows expected to reach $14.7 billion in FY23 till July 29. Portfolio inflows have been strong in FY23 at $4.1 billion in November and counting, said in the research note. Linking to the analysis was thus to measure the cost of living using a uniform measure of prices in different countries using the rupee as the exchange rate.