Household savings in India dip to lowest in five year as inflation persists

As compared to 15.9 per cent in FY21, the gross financial savings of households in India stood at 10.8 per cent in FY22

The savings of Indian households fell to the lowest level in last five years in the year ending March 31, 2022. As the inflation eroded the purchasing power, people dug into their savings to spend after the pandemic, a report by Mint stated. 

Compared with 15.9 per cent in FY21, the gross financial savings of households stood at 10.8 per cent in FY22. In the three previous fiscal years, it was 12 per cent. 

According to Mint, people had saved money during the early days of the pandemic as a protection for their health and jobs. However, as the economy