Lifestyle inflation, driven by demand and targeted by policy rates, has exceeded the increase in prices of essential commodities since FY18, according to a report by Bank of Baroda’s economics department. The report highlights that lifestyle inflation rates have risen from 4% in FY18 to 6.4% in FY23, while per capita gross national disposable income has grown at a CAGR of 8.5%. The analysis reveals significant increases in the prices of various lifestyle items, reflecting increased affordability and aspirations for improved living standards.