Inflation bites! Living cost in UK jumps 23% in 15 months. Here's where US and India stand

Amid the ongoing high inflation environment, the cost of living across countries, including the US, UK, Germany and India have increased up to 23 per cent since September 2021. According to an SBI Ecowrap report, if the household budget or cost of living was Rs 100 in September 2021 across all countries, it has now increased by Rs 12 in both the US and India. Meanwhile, it has increased by Rs 20 in Germany and Rs 23 in the UK.

The report further highlighted that India performed the best in terms of keeping the rise in food and shelter prices under check. It showed that what used to cost Rs 100 in September 2021 for food across countries now costs as much as Rs 25 in the US, Rs 18 in the UK, Rs 33 in Germany and Rs 15 in India.

On the other hand, what was priced at Rs 100 in September last year in terms of shelter prices across countries is now up by Rs 21 in the US, Rs 30 in the UK, Rs 21 in Germany and Rs 6 in India.

As far as energy prices are concerned, the US performed the best as compared with India, UK and Germany. The SBI Ecowrap report showed if the energy prices were at Rs 100 in September 2021 across countries, they are now up by Rs 12 in US, a staggering Rs 93 in the UK, Rs 62 in Germany and Rs 16 in India.

As the global economy continues to ravage through uncertainties, it thus seems that India has done quite well in managing the cost of living in comparison with other countries, according to SBI Ecowrap.

It further said that the US job market is still quite strong and the US Federal Reserve may have to do a few more rate hikes to have a firm grip on the labour market.

"India has remained remarkably resilient with 72 per cent of the $14.7-billion capital outflows till July 29 in FY23 has already been recovered. Portfolio inflows in FY23 in November has been strong at $4.1 billion and is still counting,” the research note said, adding the analysis was thus to measure the cost of living by using a uniform measurement of prices across different countries by using rupee as the exchange rate.