Middle class budget increased by 15% in April:Power, gas, house prices surge; notebooks and dining out get expensive

The condition of the middle class is continuously deteriorating. The government has already increased electricity and cooking gas prices, now the situation is such that oil has become expensive by ₹40 and ghee by ₹30per liter. There has been a direct impact on our household budget, which has increased by up to 15 percent. This is what Subhash Keer, a resident of Subhash Nagar in Bhopal, says. When he went to the local market to buy groceries, he was shocked by the rising prices. He said that after seeing the prices, he gave up the idea of buying some items from his list. These days, this is not just Subhash Keer’s story. The budget of every middle-class family is being affected due to the Iran-Israel war and the increase in electricity and gas prices. This has reached up to approximately 15 percent monthly increase. How the middle-class family is getting scorched by the fire of war and the increased prices of cooking gas and electricity are delivering a double blow…read in Monday Special…

Understand how inflation increased with the example of mustard oil War has made shipping and transport expensive. The cost of ships (Shipping) has increased. Diesel for trucks has become expensive. India produces mustard oil itself, but a large portion of refined oil (soybean, palm oil) is imported. These imports come from countries like Indonesia, Malaysia, and Argentina. When shipping became expensive, imported oil also became expensive. Pressure also increased on domestic oil (mustard), because people look for cheaper alternatives. Due to a demand shift, the price of mustard oil also increased, and packaging and processing costs also rose. Electricity/fuel is used to run the factory. Packaging is done in plastic bottles, which are made from petroleum. Both became expensive because crude oil is expensive. This further increased the production cost. Market psychology also works. Traders feel that prices will increase further. They hold stock or sell at higher prices. This brings more momentum to the market.
Electricity and gas became expensive, government gave a double blow Electricity, AC, EV, and cooking gas increases in these four major expenses have started breaking the back of the middle class. These small incremental expenses are collectively increasing the monthly budget by hundreds of rupees.
Amidst the Iran-Israel war, the middle class is bearing a double blow due to government decisions to increase electricity and gas prices. Using electricity as an alternative to fuel has also become expensive. Running AC and EV has also become expensive The impact of electricity rate increases is not limited to just bills, but will also be visible on lifestyle. Suppose you use a 1.5-ton inverter AC for 12 hours daily, then there will be an additional expense of ₹173. If you have an EV car and charge it 10 times a month, there will be an additional expense of ₹128. That means that, combining AC and EV, there will be an additional burden of approximately ₹301 every month. Poha, Kachori, Samosa, and Tea also expensive Due to cooking oil and commercial gas becoming expensive, restaurants and breakfast shops have been directly affected. Student Zone restaurant operator Rahul Singh said that due to cylinder shortage, 70% of work had to be shifted to coal, which increased costs, and many menu items had to be discontinued. Meanwhile, Ravi Jain, who runs a breakfast shop in MP Nagar, said that thali prices in the city have increased by ₹15-30. The rates of poha, tea, and samosas in MP Nagar have also been increased by ₹1 to ₹5. What 4 experts say – 1. Packaging expensive, impact on daily essentials According to printing and packaging businessman Atul Jain, packaging-related products have become 30% to 60% more expensive in the last one month. Due to a severe shortage of raw materials, the cost of medicines, dairy products (such as butter boxes), sweet boxes, and plastic bags has increased, which is directly affecting customers. The fiber and wood pulp used in copy-book covers, brown paper, and lamination are imported. Due to supply disruptions, notebook prices may increase by up to 20%. 2. Signs of crisis in medicine supply Pharma industrialist RK Goswami says that the situation is normal now, but if conditions don’t improve, there could be a shortage of medicines in May-June, especially in government hospitals. Medicines have only a 3-5% margin, while shipping and packaging costs have increased by 30-60%. Due to the inability to raise prices, production is becoming difficult for companies. 3. Rising Cost Pressure on Real Estate The real estate sector is also under pressure. According to CREDAI Madhya Pradesh Chairman Manoj Singh, other states kept guideline rates stable, while MP saw an increase of up to 20%. Due to a disruption in petrochemical supply, construction materials like pipes, tiles, cement, and paint have become 20-30% more expensive, affecting buyer confidence. 4. Increased Impact from gulf dependency, some relief for now Economics Professor Manish Sharma explains that several industries in the state are dependent on imports from Gulf countries, which is why disruption in supply has directly impacted the local market.
However, due to crop harvesting, the demand for fertilizers and petroleum is low. For now, there is some relief as diesel-petrol prices remain stable.