Mapping cost escalation in Diwali
Gujarat’s retail inflation stood at 5.11% in Sept, while national food inflation reached 7.74%, according to Consumer Price Index data from Union ministry of statistics and programme implementation. Ahmedabad: Inflation is affecting Diwali shopping lists, with households facing price pressures on everyday essentials even as the festive season brings a fresh round of spending. For households, Diwali brings its own set of expenses, from dry fruits, sweets, and new clothes to gold and silver purchases, electronics and family travel. With prices of everyday goods and services already heating up, the additional festive outlay could force consumers to rethink how much they spend.
“Dry fruit demand is down 60%, while prices have risen 25%. Vandan Shah, associate member, Nuts and Dry Fruits Council of India “Home appliance prices have risen 15-30%, driven by higher electronic chip and freight costs, with anti-dumping duties adding to the pressure. Jigar Soni, president, Jewellers Association of Ahmedabad · Home appliances, electronics: 15-20% TRAVEL
Consumers have more alternatives, and due to high prices, many have shifted away from dry fruits this festive season. Demand is down 20% year-on-year, store inquiries are weak, and turnover remains flat due to higher prices. For retailers, the challenge will be to sustain demand through the festive season. Discounts, smaller purchases and a shift towards lower-priced alternatives could shape buying patterns as consumers balance customary Diwali spending against routine household expenses. Lower purchasing power and higher freight costs have reduced order volumes substantially. Rising costs leave little room for discounts. Bhavesh Waria, president, Ahmedabad Electronics Dealers’ Association “Demand for gold and silver remains healthy as prices have recently reduced, with bookings also coming in for lab-grown diamonds and lightweight jewellery. Consumers are exploring different options to suit their budgets and preferences this festive season.
However, pure gold and silver prices are definitely higher compared to last year.