Prices down but it’s still a struggle for middle class...

Deodorants, lipsticks and other lifestyle products are up by a monthly average of about 5% since January 2013. You are likely to pay R360 or more for a hair cut that cost R300 three years ago. Entertainment costs such as direct-to-home charges have increased in the range of R180 to R250 a month. Movie tickets, too, are pricier. Official retail price data shows that “recreation and amusement” inflation has gone up by a monthly average of 5.37% since January 2013.

Likewise, official estimates show that education costs, including private tuition fees, have gone up at a monthly average of 7.29% between January 2013 to November 2015. These expenses have virtually neutralised the relief falling oil and commodity prices could have brought to the middleclass.

“We use to pay just R100 to the local cable-operator whereas now DTH (direct-to-home) connection costs R550 a month. Cost of train travel has also gone up by more than 30%,” said Mahesh Kalra, a retired banker who lives in west Delhi’s Paschim Vihar area.

Experts attribute soaring medical and education costs to poor state of government services.

“Primary health and primary education are essentially public services. The quality of these has been largely unsatisfactory, driving more and more people to seek private services. This has push up costs,” said Ajit Ranade, chief economist, Aditya Birla Group.

Medical costs are one of the biggest contributors to indebtedness in India.

House rents have gone up by about 25% since January 2013. Monthly retail “housing inflation”, a gauge of movement of home rentals, has gone up by an average of 8.10%.

“Housing rents have grown by around 18-20% in the last three years,” said Rohan Sharma, associate director (research & real estate intelligence service) JLL India, a real estate consulting and research firm.

The monthly rent of a threebedroom apartment in east Delhi’s Mayur Vihar area has risen to R27,000-R30,000 from about R23,000-26,000 per month three years ago.

Lifestyle inflation – often

ignored -- is now taking up a much larger space in incomes and is growing.

(with inputs from Himani Chandna)