NABARD: 76.6% rural families increased their expenditure due to reduction in inflation, government help also provided relief
NABARD: According to the National Bank for Agriculture and Rural Development (NABARD), rural inflation decreased from 3.25% in March to 2.92% in April and 2.59% in May. Food inflation also decreased to 1.36%, which has improved financial health. 20.6% families said that their savings are increasing.
76.6% of rural families have increased their spending due to reduced inflation concerns. According to NABARD's Rural Economic Situation and Sentiment Survey (RECSS), signs of improvement are evident in the rural economy. More than 78.4% of families believe that the current inflation rate is 5% or less, indicating better price stability.
According to the National Bank for Agriculture and Rural Development (NABARD), rural inflation dropped from 3.25 percent in March to 2.92 percent in April and further to 2.59 percent in May. Food inflation also decreased to 1.36 percent, enhancing financial health. 20.6 percent of families reported that their savings are increasing. Meanwhile, 52.6 percent of people have taken loans only from formal institutions. The survey noted that among various informal loan sources, friends and relatives constitute a larger share than moneylenders. Regarding outlook, 74.7 percent of people expect their income to rise next year, and more than 56.2 percent anticipate better employment prospects in the short term.
The survey indicates an encouraging trend of rising income, increased financial inclusion, and growing domestic optimism in rural India. Income and spending levels are being supported by numerous fiscal transfer schemes from both the central and state governments, including subsidies for food, electricity, cooking gas, fertilizer, and aid for school needs.
