When “Low Inflation” Doesn’t Feel Low at All

You hear it on the news all the time - inflation is under control. Experts say prices aren’t rising too fast. On paper, everything seems fine. But then you go to the market. The same grocery bag costs more than it did a year ago. School fees have quietly gone up again. A single doctor visit feels heavier on the wallet. Rent takes a bigger bite before the month has even started. Somewhere between those headlines and your household budget, the comfort disappears.

For many middle-class families, it feels like money is slipping through fingers faster than before, even though salaries haven’t moved much. That’s why all the talk about inflation being “low” often sounds disconnected from daily life. It doesn’t match what people actually experience.

What Inflation Really Counts and What It Misses

Inflation is supposed to measure how prices rise over time. It looks at an average basket of things people buy and tracks how much that basket costs. But here’s the problem: nobody actually lives on an “average” basket.

Most families don’t spend evenly across everything. A large part of monthly income goes into basics - food, rent, school expenses, medical bills, transport. These are not optional costs. You can’t delay them or cut them out.

When the prices of these essentials rise faster than other items, the official inflation number may still look reasonable. But for households, it feels much higher. That’s because the things you have to pay for are the very things becoming more expensive.

So even if inflation is said to be under control, everyday life tells a different story - one where budgets feel tighter, savings shrink, and every expense needs a second thought.

Prices Over Time

A look at everyday costs over the last decade explains this discomfort.

Between 2015 and 2025:

• Food items have seen repeated price spikes
• Education costs have risen steadily every year
• Housing expenses have increased even when wages haven’t
• Medical bills have become more frequent and expensive

This long-term trend is why many households feel that prices never really come down, even when inflation is described as “moderate”.

Middle-Class Budget Reality (2025)

Below is a typical monthly middle-class budget in 2025, based on a ₹40,000 household income:

Key Insight:

Education costs (19%) are now higher than housing (18%). This reflects a uniquely Indian middle-class priority investing in children’s future even at the cost of present comfort.

Why Inflation Hurts More Now

The pain isn’t just about numbers. It’s about where inflation hits.

Food inflation affects daily spending. Education inflation affects long-term planning. Healthcare inflation is unpredictable and emotionally stressful. Together, they create financial anxiety even when the current inflation rate in India appears stable.

Add slow wage growth to the mix, and households lose their margin for error. One unexpected expense can derail the entire monthly budget.

RBI’s Role and Its Limits

The RBI focuses on controlling overall inflation, mainly through interest rates and liquidity management. Its job is to maintain price stability at a macro level, not to manage individual household budgets.

This means:

• RBI can control demand-side inflation
• RBI cannot directly reduce school fees, rents, or hospital bills
• RBI policy works with a lag, not instantly

As a result, inflation may slow statistically while daily costs continue to rise.

The Real Story of 2025

In 2025, inflation hurts more because:

• Income growth is uneven
• Fixed expenses dominate budgets
• Savings buffers are thin
• Aspirations (education, healthcare, mobility) cost more

This is why Rising Prices in India feel harsher for the middle class than for other income groups.

What Inflation Misses

Inflation data does not measure:

• Stress caused by irregular medical costs
• Pressure of education loans and fees
• The fear of losing financial stability
• The shrinking ability to save

These factors shape the real Cost of Living in India, even when inflation numbers look manageable.

The Second Look at Inflation Rate in India 2025

This is the second and final mention of inflation rate in India 2025, and it matters because the story is not about statistics alone. It is about how inflation quietly reshapes choices, priorities, and quality of life.

The Takeaway

Inflation in 2025 is not out of control but it is uneven, targeted, and relentless for the middle class. Prices don’t need to rise dramatically to cause pain. They only need to rise faster than incomes.

Low inflation does not automatically mean affordable living. For millions of Indian families, the pressure comes from essentials that cannot be postponed or avoided.

FOR THE UNITED INDIAN

Why This Matters

Economic data often misses household reality. Explaining inflation through real budgets helps readers understand why price stability does not always translate into financial comfort.