Lately, I feel it every time I open my wallet. I go to buy groceries, and what used to cost ₹100 now costs ₹130. I see rent notices, and my heart drops. I scroll through Instagram, see people eating out, travelling, but I wonder: “How?” Because life feels like one struggle after another now. I know I’m not alone. Many people are going through this: students, young professionals, families. The cost of living in India is rising, and it's not fair. I want to break it down, why it’s happening, how it hits us, and what maybe we can hope for.
There’s no one reason. It’s a storm of many reasons banging on us at the same time. Inflation is the sneaky villain. According to recent data, India’s inflation (CPI) in 2024 was about 4.953 % year-on-year (Trading Economics). The government also says retail inflation dropped to 4.6 % in 2024–25 (Press Information Bureau). That means things we buy every month, food, clothes, travel, are slowly taking more of our income. Housing and rent are shooting up faster than inflation. Experts expect home prices to rise 6.5 % this year (Reuters). But rent may go even higher; in some cities, projections say a 7–10 % rise in rent costs (Business Standard). Also, housing inflation is real: in November 2024, housing inflation in urban parts was around 2.87 % year-on-year (MOSPI). Studies are showing that rent occupies 7 % of non-food urban household spending (Reality Plus).
Supply chain, fuel, and external shocks are also adding pressure. Fuel prices go up → transport costs go up → the cost to bring food and goods to market increases → those extra costs land on us. Global events like wars or trade disruptions ripple into raw materials, oil import costs, and everything else. Wages lag, too. Even if companies give a raise, it often doesn't match how fast costs are rising. So your real earning power, how much you can buy, shrinks.
This is where it stops being “economics class” and becomes life. Savings vanish. I see it around me, people earning more, but saving nothing. Everything goes into rent, groceries, and medicines. The mental burden is huge. You worry about “What if the electricity bill is more? What if medicine is more? What if there’s an extra expense?” That stress is real. It weighs you down. You start cutting small joys. “Should I skip going out tonight?” “Maybe I won’t buy that new shirt.” These are daily thoughts now, when your life becomes about careful math at every step.
Inequality worsens. For rich people, inflation is a side thing; they have assets, property, and investments. For those in the middle or lower class, inflation eats up everything. So the gap widens. Forced compromises become normal. Maybe you eat cheaper food, travel via slow transport, choose public over private healthcare, or delay education goals. Life becomes about choosing cheaper options, not what you want. And that’s not what we want.
In top Indian cities, average residential rent increased 2–4 % in 2024 compared to the prior quarter (Let's Rentz Blog). The average gross rental yield in India is ~4.84 % in Q2 2025 (Global Property Guide). Urban expenditure share on rent has grown; rent’s share in household spending in cities has increased over the years (Policy Circle). Housing vacancy rate in urban India is ~12.4 % (i.e. many houses are empty even while many struggle for a roof) because of insecure rights and speculative holding (ScienceDirect). These numbers are cold, but behind each is a person, me, you, someone struggling.
I don’t believe in magical solutions. But some things can ease the burden bit by bit. Be aware, track, and plan. Write down expenses, see what eats the most. Small changes can sometimes free up space. Support local and short supply chains whenever possible; buy from local producers so the middle transport costs are reduced. That helps the chain shorten, and maybe the cost drops. Live with purpose in housing and rent decisions, maybe choose a place a bit farther if the rent is far cheaper, or find roommates to share costs. Demand better public services. Use community voices to demand affordable, quality healthcare, transit, and education. If public options are better, fewer will be forced into expensive private ones. Save smart, not big. Even ₹100–₹200 a day, invested or kept wisely, can help. Avoid debt traps. Don’t buy things you don’t need just because others are doing it. Push for policies. Governments should cap essential goods, regulate rent inflation, incentivise housing for middle-income people, and support agriculture so food doesn’t keep rising.
This article is not to show off how much I know. It's because I feel it. Maybe you feel it now. I want you to see that it’s real, and it’s valid to complain, to feel exhausted, to want relief. India is growing. But growth that leaves people exhausted, always struggling, that’s not growth worth celebrating. When the middle class is gasping to breathe, when dreams feel like a luxury, when saving is impossible, then we must rethink. Everyone deserves the chance to live, not just survive. Not just to pay rent and food, but to think about dreams, health, and happiness. Growth should give us breathing room, not suffocation.
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