Middle income group has sharply cut expenditure by nearly 49 per cent on entertainment, eating out and leisure shopping due to pocket-pinching inflation but made no compromise on vices like tobacco products, an Assocham study said.
The study, based on responses of 3,000 middle and high income groups in cities, spread over 25 days in July, recommended further measures like using car pools, public transport and restricting spendings to essential items.
It found that increase in inflation, based on the wholesale price index, from 7 per cent to above 11 per cent has forced middle class families to cut their average budget for entertainment, eating-out and fancy shopping from Rs 5,000-6,000 per month to less than Rs 2,800 per month.
However, inflation could not dent the spirit of the higher income group. An average high-heeled family continues to spend Rs 20,000 per month on leisure that includes movies and music.
Meanwhile, middle income males who generally spend anywhere between Rs 400 and Rs 1,000 per month on tobacco products like cigarettes, pan masala, gutka have not really cut on this expense.
Also, problems in the family budget did not impact the womenfolks who continue to give business to beauty saloons and cosmetic products, the study said.
It did not specify the income limits for the middle and higher income groups.
"Working population should use their personal vehicles during Sundays only and try to commute to work by pooling cars..." the study recommended, adding youth using cars can shift to two-wheelers to save on fuel.