The ever-growing inflation rate has left all of us dumbstruck. How many of us knew that there is something known as crude oil that could control our economy until the last one year or so. With fluctuating crude markets, the entire world's economy has experienced a setback.

But as always, there is the other side of the story too. Even though the rising inflation has had its effect on your expenditure, there could also be other factors that leave a bigger hole in your pocket. Sounds weird? But this is the truth. Looking at the broader picture, I would like to insert an aspect of inflation which you might not have encountered before, known as lifestyle inflation.

Speaking in a layman's language, lifestyle inflation refers to increase in your expenditure due to the rise in your pay-scale. It is a general phenomenon that as one's disposable income rises, one tends to acquire certain expensive tastes and desires. For example, a few years ago, you might felt satisfied by watching a movie at an ordinary movie hall. However, with a rise in your pay-scale, you would like to do the same at multiplexes. The ticket which earlier used to cost you Rs80 will now cost you Rs150. Now, the inflation derived from wholesale price index does not include these costs. This is what you spend on maintaining lifestyle that you desire, hence it is termed as lifestyle inflation.

The concept of lifestyle inflation has bitten the young generation to a large extent. Earlier, there was no mention of lifestyle inflation as the income growth was merely 5% over and above the headline inflation. But now, the scenario has changed. An individual's income has pegged to a minimum increment of 15-20% in most organisations with regard to appraisals and job switches. As a result, the purchasing power of people has grown to a large extent. This has resulted in people giving in to aspirational and peer pressures. We want to lay their hands on a premium sedan, the latest version of laptop and LCD television even if this process siphons off a portion of our bank balance.

While the government is responsible for making us pay a little bit more, it is ultimately we ourselves, who have contributed equally to this situation by demanding more than our markets can supply.