Finance Ministry says inflation hurt rich more than poor in FY22: Report

As India's retail inflation soared to an eight-year high in April to 7.79 per cent, the Finance Ministry stated that the poor were hurt less by higher prices in FY22 as compared to the rich, according to a report by Moneycontrol.

“Evidence on consumption patterns further suggests that inflation in India has a lesser impact on low-income strata than on high-income groups,” the Finance Ministry said in the monthly economic review report for April, released on May 12.

Interestingly, the ministry's findings contradict comments made by Reserve Bank of India Governor Shaktikanta Das last week. While announcing a surprise 40 basis point repo rate hike on May 4, Das had said sustained high inflation has "pronounced adverse effects on the poorer segments of the population by eroding their purchasing power".

DH earlier reported that many low and middle-income families are already dipping into their savings or taking high-interest loans from money lenders to pay their food bills. Some people have started taking buses to commute to work instead of using their own vehicles or opting for cabs. In some extreme cases, people are skipping meals or eating less altogether to make ends meet. Most people have completely stopped spending on non-essential items.