India’s purchasing power: 2001 vs 2022

Retail inflation has hit 7% this year, well above the Reserve Bank of India’s upper margin of 6%. This is the eighth month that inflation has remained the same.

Historical data from CMIE prowess shows that the prices of commodities have changed drastically, 400% in the last two decades. Here is a list of all the commodities that have changed prices over the last twenty years.

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Cereal prices

The average price of non-basmati rice in the 2001 financial year was Rs 5.27 per kg. Today, the price of the same commodity is Rs 27.55 per kg. A rise of 423%. In other words, Rs 1000 could buy an individual 190 kg of rice in 2001, whereas now you can buy 36 kg in 2022. 

Similarly, the cost of basmati rice increased from Rs 629 per quintal in 2001 to Rs 6107 per quintal in 2022, an 870% increase.

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Pulses prices

Arhar cost Rs 1800 per quintal in FY 2001. In 2022, it costs Rs 5820 per quintal, a price escalation of 224% in the last 21 years. 

The price of Gram (chana) went from Rs 1400 per quintal in FY 2001 to Rs 5090 per quintal in 2022, a 263% increase. 

Other pulses like green gram (Moong), lentil (Masoor) and black gram (Urad) have increased 253%, 340% and 264% respectively. In 2001, Rs 1000 could buy 59 kg of urad compares to 16 kg in 2022. 

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Petroleum prices

The price of petrol in Delhi in the FY 2002-2003 was Rs 29.5 per litre. In 2022, petrol now costs Rs 98 per litre.

Similarly, the price of diesel was Rs 19 in FY 2003 compared to Rs 87.5 per litre in 2022, that is a 360% increase over 19 years. 

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Per capita income

In the financial year 2000-2001, the net national income per capita was Rs 18,667. In 2022, it is now Rs 1.5 lakh, a 700 percent increase over the last 21 years.