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Richest 20% facing more inflation than poorest 20%, says CRISIL

The gap widened in rural areas in October relative to September as inflation for the bottom 20 per cent fell more

People pick up food from a collection point of non governmental organization (NGO) Vidya Dham Samiti in Banda District, Uttar Pradesh. Photo: Bloomberg
Representative image

Crisil has estimated that the highest inflation was faced by the upper 20 per cent income group in urban areas — 5 per cent year-on-year in October compared with 4.6 per cent in September.

“This was driven by fuel and core inflation, which cumulatively occupy 65 per cent weight in their commodity basket,” Crisil said. The lowest inflation was faced by the bottom 20 per cent in rural areas — 3.9 per cent year-on-year in October compared with 4 per cent in September, driven by lower food inflation. 

The gap widened in rural areas in October relative to September as inflation for the bottom 20 per cent fell more. However, the gap reduced in urban areas as inflation rose for the bottom 20 per cent in addition for the top 20 per cent.