India Spending High Inflation

Putting an end to the debate on India's growth based on the government's capex push, global rating agency Fitch Ratings said that consumer spending will increase with elevated consumer confidence, a sign of enhanced income for people.

Shares in India's Westlife Foodworld fell as much as 7.7% on Friday, a day after the McDonald's operator reported a surprise drop in quarterly profit and indicated high inflation was squeezing consumer spending in the current festive quarter.

The Indian government is considering spending an additional 2 trillion rupees ($26 billion) in the 2022/23 fiscal year to cushion consumers from rising prices and fight multi-year high inflation, two government officials told Reuters.

Inflation is expected to ease to 3.90 percent in November from a year earlier, according to the median consensus from the Reuters poll of over 20 economists.

Middle and lower income families will spend 43 per cent less this festive season than last year due to inflated prices of daily food items coupled with a high education cost and a grim job market scenario, a survey by Assocham found.

India is growing at the slowest pace in a decade and the persistently high and sticky inflation has forced the central bank to push interest rates higher, further impacting growth. High fiscal deficit may force the finance minister to cut spending in the current quarter, which is likely to weigh on growth, analysts say.

High inflation and slower growth continue to worry Indian consumers with more people expecting lower salary increases, said the survey, which interviewed 2,602 respondents across 10 cities and rural areas in India.

India's headline inflation likely accelerated to an 11-month high in October on costlier fuel and food, a headache for the government in a battle with the central bank over spending and high interest rates ahead of state elections.

Putting an end to the debate on India's growth based on the government's capex push, global rating agency Fitch Ratings said that consumer spending will increase with elevated consumer confidence, a sign of enhanced income for people.

Shares in India's Westlife Foodworld fell as much as 7.7% on Friday, a day after the McDonald's operator reported a surprise drop in quarterly profit and indicated high inflation was squeezing consumer spending in the current festive quarter.

The Indian government is considering spending an additional 2 trillion rupees ($26 billion) in the 2022/23 fiscal year to cushion consumers from rising prices and fight multi-year high inflation, two government officials told Reuters.

Inflation is expected to ease to 3.90 percent in November from a year earlier, according to the median consensus from the Reuters poll of over 20 economists.

Middle and lower income families will spend 43 per cent less this festive season than last year due to inflated prices of daily food items coupled with a high education cost and a grim job market scenario, a survey by Assocham found.

India is growing at the slowest pace in a decade and the persistently high and sticky inflation has forced the central bank to push interest rates higher, further impacting growth. High fiscal deficit may force the finance minister to cut spending in the current quarter, which is likely to weigh on growth, analysts say.

High inflation and slower growth continue to worry Indian consumers with more people expecting lower salary increases, said the survey, which interviewed 2,602 respondents across 10 cities and rural areas in India.

India's headline inflation likely accelerated to an 11-month high in October on costlier fuel and food, a headache for the government in a battle with the central bank over spending and high interest rates ahead of state elections.