The rupee for the last one month has been falling continuously, rapidly. Many people are distressed, businesses are getting slower growth and inflation is zooming up. What’s worse Deutsche Bank has said that the rupee may slide to 70 to the dollar in a month! But here’s how that fall of rupee will affect your household budget:
Groceries: Your monthly grocery bill is all set to rise, as the weakening rupee means crude oil, fertilisers, (all imported by India) have become costlier. You do not use all these but your average farmer will shell out more money on fertilizers and increased transport costs mean your veggies and pulses will become expensive.
Also most soaps, detergents, deodorants and shampoos, contain crude oil they too will become expensive.
Foreign education: Planning to send your child for studying abroad? You might want to put it on hold. As the average costs for studying abroad has almost doubled. So if you had a 10 lakh fee fees abroad, you will have to shell out some lakhs extra to study!
Jobs: Get ready for lesser pay and bad appraisals as the falling rupee will impact every company. As every industry that imports will have an increase in cost of production. However, it is a good time if your company earns in dollars as they will get more money against dollars!
Vacationing abroad: Vacationing abroad will have to wait for a bit. Air fares will go up by at least 5% as fuel charges are increasing. Also the falling rupee means a bad exchange rate and expensive stay and travel.
Clothing, electronics and fast food: Your favourite pizza is all set to become expensive as cost of importing will go higher and most fast food chains import their raw materials.
Electronic goods like computers, televisions, mobile phones, and imported components will become costlier.
Planning on shopping an entirely new wardrobe? Well retailers like Zara, Vero Moda, etc have all agreed to up their prices post sales as cost of importing and falling rupee is impacting them too.
Imported goods: Buying that imported stuff will become a costly affair. You will have to pay about 10 rupees extra per USD.
Fuel price: A weak rupee will increase fuel prices which will lead to an increase in overall cost of transportation that will give rise to higher inflation.
