The Russia-Ukraine war not only has impacted the global economy but also led to a rise in the cost of living worldwide. Even though the living cost has risen globally, India has done better than many developed countries like the UK and Germany. India fared well in terms of the increase in cost of living, according to a SBI report.
Since the beginning of the Russia-Ukraine war, there has been a surge in the cost of living in the developed world and emerging economies but India stands like an oasis in an era of uncertainty amid global inflation due to sound macro management, the report said.
Cost of living rises
Since September 2021, the cost of living in countries like the US, UK, Germany has jumped by a whopping 23 per cent. The SBI Ecowrap report pointed out that if the household budget or cost of living was Rs 100 in September 2021 across all countries, it has now increased by Rs 20 and Rs 23 in Germany and in the UK, respectively.
In India and the US, meanwhile, the hike is by Rs 12, meaning that people in both the countries will now need Rs 112 as their household budget.
Rise in food and shelter prices
The SBI report also noted that India performed the best in terms of keeping the rise in food and shelter prices under check. If we assume that a household required Rs 100 in September 2021 for food across countries, the cost has now surged by as much as Rs 25 in the US, Rs 18 in the UK, Rs 33 in Germany but just Rs 15 in India.
Likewise, India also did better in terms of shelter prices across countries. What used to cost Rs 100 in September last year across countries, has now jumped by Rs 21 in the US, Rs 30 in the UK, Rs 21 in Germany and only Rs 6 in India.
Jump in energy prices
The US pipped India in terms of energy prices and turned out to be the best performer when seen against the UK, India and Germany. The SBI Ecowrap report showed if the energy prices were at Rs 100 in September 2021 across countries, they are now up by Rs 12 in US, Rs 93 in the UK, Rs 62 in Germany and Rs 16 in India.
“India has remained remarkably resilient with 72 per cent of the $14.7-billion capital outflows till July 29 in FY23 has already been recovered. Portfolio inflows in FY23 in November has been strong at $4.1 billion and is still counting,” the research note said.
