NEW DELHI, Oct 16 Reuters Rising prices of edible oils and vegetables like onions and tomatoes have driven up grocery spending for Indian households ahead of the festival season, prompting some consumers to limit more expensive purchases like electronic items, retailers said.
India39;s annual festival season, which runs from late September to early November, sees households scramble to buy food and other goods, encouraged by discounts offered by both online and brickandmortar retailers.
But the start to the festive season this year has been slow.
Sales of electronics and home appliances so far in October have risen just 57 from last year, against estimates for an 810 climb, said Nilesh Gupta, director at Vijay Sales, a retail chain with 143 stores.
We remain optimistic that sales will pick up, he said.
India39;s economy is projected to grow by 7.2 in 202425, driven by increased rural demand, according to the central bank39;s estimates.
But highfrequency indicators such as auto sales and manufacturing purchasing managers index have suggested weakness in the economy.
Retail inflation, particularly for food, has remained high, eroding disposable income.
In September, retail inflation was 5.49 and food inflation at 9.24. Vegetable prices were 36 higher than a year ago.
The surge in onion prices, along with other food items, is having a ripple effect on the purchasing behaviour of small customers, said B.C. Bhartia, national president of the Confederation of All…