You’re not imagining it - that box of laddoos did cost more this year than last. The saree you bookmarked in August? Now 20–25% pricier. Welcome to festive inflation, the near-invisible guest at every Indian celebration.

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The Price of Celebration

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If your wallet felt lighter this Diwali, you’re not alone. According to the Centre for Monitoring Indian Economy (CMIE), consumer spending during the October–December quarter has been rising by nearly 15% year-on-year, with prices of essentials like sweets, dry fruits, and travel seeing steep hikes. Retail inflation may be hovering around 5.5%, but festive inflation can feel like double that.

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Why? Demand skyrockets. From decorators to delivery partners, everyone raises prices, because everyone’s spending more. Add last-minute shopping and social pressure, and the effect compounds.

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The Hidden Costs Behind the Sparkle

Here’s where inflation strikes hardest during festivals:

• Travel & Logistics: Airfares and ride fares often surge 25–40 % in the two weeks before Diwali.
  
  
• Food & Sweets: Demand for dry fruits, oils, ghee, and specialty sweets can push prices higher.
  
  
• Gold & Jewelry: On days like Dhanteras, gold premiums tend to go up due to auspicious buying sentiment.
  
  
• Clothing & Décor: Brands may pre-inflate prices before seasonal sales, so “discounts” aren’t always real deals.

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A 2023 Deloitte survey echoed these instincts: it found Indian consumer spending is expected to rise during the festive season, with many respondents expressing readiness to spend more on discretionary and celebratory items.

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The Post-Festive Realisation

Now that the lights have dimmed and the sale notifications have quieted, it’s the perfect time to reflect. Did festive inflation catch you off guard? Did “limited-time offers” turn into unplanned credit bills? Well, the good news is that it doesn’t have to be that way next year!

How to Outsmart Festive Inflation (Starting Now)

1. Start Your Celebration Fund Early

If inflation returns every festive season, let your savings rise with it. A small FD or SIP started today can become next year’s celebration fun, cushioning you from price shocks.

2. Shop Smart, Shop Early

Plan major purchases months in advance. Off-season prices are lower, stock variety is higher, and you avoid the emotional rush that leads to overspending.

3. Set a Festive Budget and Track It

Break your spending into clear categories: gifts, travel, food, décor. Tools like axio can help you set limits and track every rupee so you celebrate mindfully, not impulsively.

4. Buy Local, Think Thoughtful

Homegrown artisans and local markets often offer unique, affordable finds without the festive mark-ups. Supporting them adds meaning (and savings) to your gifting.

5. Be Wary of the ‘Discount Illusion’

Those “Flat 50% Off” banners aren’t always bargains. Compare across sites and check price histories — real savings come from research, not rush.

6. Use Digital Tools, Not Just Discounts

Cashback, rewards, and festive offers are great perks - as long as you’re in control. Use payment and credit apps smartly, and let a budgeting tool like axio help you stay on top of your spending.

The Bottom Line

This festive season may have come and gone, but its financial lessons are worth carrying forward. Plan ahead, budget wisely, and let your finances be as ready for celebration as you are.

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Disclaimer: The information in this article is compiled from various sources and is an opinion piece only. This is not to be taken as a substitute for professional advice on managing finances, reader discretion is advised.