According to a study by the rating agency Crisil, Indian households, particularly lower income households, are under increasing stress as the price of food rises dramatically as a result of inflationary pressures on the Indian rupee.

The report found that the overall inflation rate in the Indian economy has increased by nearly 8% per year for the last three years compared to 5% per year during the period of 2008 to 2009. As well, inflation in the household sector goods and services rose to 8.1% over the last three years.

However, inflation across all household sectors was not uniform, and according to Crisil, India’s food prices have experienced an alarming rate of inflation. Between 2008 and 2009 the food inflation was at 5.7% compared to 11.6% during 2010 t0 2011.

The report also pointed out that among the 316 goods that have registered a sharp price increase, 36 are raw food products, including milk, most fruits and vegetables, meat, egg, and fish.

The report also focused on the effects of inflation on different income categories. The report concluded that: “Higher inflation in food articles versus price decline or a moderate inflation in consumer goods favours the middle and upper middle class compared with the low income group which spends higher share of its income on food”.