The inflation is here to stay for some time now says the RBI, the apex bank of the nation. this means there is going to be a lot of additional burden on the pockets of the consumers. Well this is not whats really worrying as compared to the topic of my current discussion. There is another significant phenomenon that is creeping into our economy. It is commonly known as the lifestyle inflation.

Let us try and understand what lifestyle inflation really mean and how it is affecting our lives. The pockets of the vaste middle class that rules the nation have vastely expanded in the last few years to come. Well, that isn't much news, it is, the expenditure has increased too and in equal proportion. This is more of psychological phenomena rather than a physical one. It is a simple phenomen that affects our thinking process.

We desire for the bigger and better standards in living than we have. As the income increases the desire for expensive goods and luxuries increase in the sme proportion. The hole in our pockets never gets mended rather it only increses in size, the increase being directly proportional to the income increment. So to say, the level of satisfaction is always an elusive higher level. Once we attain this higher level, it is raised to a still higher level. So to say the satisfaction is always beyond reach. A person first desires a two wheeler, if he gets it, he would still not be satisfied as he would now possibly desire a car.

There are many reasons for the lifestyle inflation spreading its wings higher and encompssing the greater number of the populace under its spread. There are many contributing factors to aid this phenomenon. The first and the more prevalent being the peer pressure. Lots of people in the urbane middle class of the new emerging genre buy branded clothes and expensive watches either to boast their fortune or due to sheer pressure to move with the society. It is for the similar reasons that they buy Cars or hold credit cards to sport their wealth. It dosent matter even if they have to borrow exhorbiatant loans for the purpose.

Another reason is that the goods that were within affordable limits have creeped upwards slowly in terms of cost, so now not only are the branded nd luxury items costly, but, so are the items of daily use and absolute necessity. The problem arises here, where the societal pressure coupled with the rising costs pushes the individuals to live beyond there monetary limits.

Lifestyle inflation is more of a self imposed problem rather than being caused by the physical pressures, the latter may of course be the contributary factor to some extent.

 Its time we nlysed our budget and accordingly took some actions to fight out the lifestyle infltion affecting our lives