A discussion on Reddit has sparked concerns over the rising cost of living, with several users pointing to a sharp increase in everyday grocery prices. From rice and milk to edible oil, households are reportedly feeling the pressure on their monthly budgets.
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“Cost of living and inflation have increased so sharply in the last 3 months. A 5 kg rice bag which used to cost Rs 330 is now Rs 510; Milk Rs 46 per litre last month is now Rs 56 per litre. Other grocery, dairy, and edible oil prices are increasing so sharply. The government has not increased the fuel prices and yet companies are increasing these prices and reporting record profits. How will the common man survive?”
Cost of living seeing sharp spike. Companies reporting Record Profits.
by u/Progressive-1705 in personalfinanceindia
The comment followed amid inflation concerns due to the Middle East war, which has added pressure on fuel prices. According to a survey by the Reserve Bank of India, Indian households are expecting inflation to head even higher.
The Reddit discussion also raised questions about how companies are continuing to report record profits while consumers struggle with rising expenses.
Reacting to the post, many users agreed with the situation, while some warned that the food crisis is only about to worsen due to poor monsoon in India this year.
“There is a food crisis brewing due to the poor monsoon. Rice prices have gone up because they expect output to be lower by 10%. Wholesalers are preparing for a lower wheat output as well, and that's reflected in the growing prices,” a user commented.
Many questioned whether businesses are passing on higher costs to customers or simply taking advantage of the situation.
“The wheat we used to buy in Bengaluru went from Rs 52-54 to 60 now within a span of a month. When I was telling this to my mother , the hometown price was just Rs 40. My mother laughs at you for paying the Bengaluru price,” a user asked.
Inflation Impact in India
This discussion comes amid a broad-based rise in food prices that have pushed up household costs. Common staples like onion, meat and eggs have had a significant spike in prices recently due to poor monsoon as well as the impact of the Middle East.
Despite global and domestic challenges, Indian corporate September-quarter profit growth has accelerated. Small-cap companies led the recovery with 34% year-on-year earnings growth, followed by large-caps at 30% and mid-caps at 26%, according to Motilal Oswal Financial Services (MOFSL).
As per Reuters, Nifty 50 firms' net profit is forecast to rise about 20% year-on-year on average during the quarter even as benchmark Nifty 50 is at its worst in years.
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India's retail inflation is expected to climb to 6.05% in October, crossing the RBI's upper 6% tolerance limit for the first time since October 2024. While rising food prices have hurt household budgets, economists expect inflationary pressures to persist in the coming months.
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