India's performance better than United state, United kingdom, Germany in managing cost of living amid economic slowdown: Report

 

• SBI Ecowrap report also mentions that India has performed better than US, UK and Germany in terms of food prices

Food and energy prices have skyrocketed, leaving the world with inflation. Central banks across the country are in the midst of a rate hike cycle while the cost of owning a home has skyrocketed. However, despite these macroeconomic shocks, India still stands "like an oasis in this age of uncertainty", according to the latest SBI Ecowrap report.

The report compared the cost of living in India with the US, UK and Germany and said that in September 2021 the household budget/cost of living was ₹100 in all countries, now it has increased by ₹12 in both the US and India , but it has increased to ₹20 in Germany and ₹23 in the UK.

Furthermore, the report states that India has performed better than the US, UK and Germany in terms of food prices.

The report claimed, "The cost of ₹100 across the country in September 2021, has now increased to ₹25 in the US, ₹18 in the UK, ₹33 in Germany and ₹15 in India."

And in terms of energy prices, "in September 2021 it cost ₹100 across the country, which is now ₹12 in the US, ₹93 in the UK and ₹62 in Germany and ₹16 in India."

The report made a comparison between four global economies by adjusting each country's exchange rate (dollar, euro and pound in our case) to achieve parity with the rupee.

Housing CPI index of each country is also changed with respective changes in exchange rates vis-à-vis rupee, it is observed that cost of living increased by ₹21 in US, ₹6 in India, ₹30 in India Is. in the UK, and ₹21 in Germany over the past year.

"While the cost of living has declined following the global upheaval, India still fares much better than countries that are considered the epitome of sound macro management," the report said.

Further, pointing to India's per capita income (PCI) in relation to the cost of living, the report found that the country's PCI in dollar terms has increased by 57% in the last eight years.

The report said that the US job market is strong and the Fed may have to hike a few more rates to have a firm grip on the labor market.

India remains remarkably resilient, with 72% of capital outflows of $14.7 billion in FY2023 up to July 29 having already recovered.