Zerodha's Nikhil Kamath has a question on inflation: In what order do people control spending?

Nikhil Kamath, Co-founder, True Beacon and Zerodha

Zerodha co-founder Nikhil Kamath on Wednesday posted a question on Twitter regarding the steep inflation the country has slipped into.

"What happens when inflation eventually and inevitably leads to higher unaffordable prices," Kamath tweeted. "People stop buying homes, autos, stocks, jewelry, watches, electronics, holidays, new clothes, etc."

Then he asked his followers in what order do they control their spending. "Holidays-auto-electronics first?" he asked.

What happens when inflation eventually and inevitably leads to higher unaffordable prices. People stop buying homes, autos, stocks, jewelry, watches, electronics, holidays, new clothes, etc
In what order though, holidays-auto-electronics first?

— Nithin Kamath (@nikhilkamathcio) May 11, 2022

"I believe it starts with going out for movies and dinner and other entertainment options like OTT. Holidays second. Auto and electronics (mobile specially) become necessity for some families," Twitter user Utsav Verma wrote in response.

"Watches, automobiles. In terms of electronics, people will defer their purchase or continue using their current device a little longer. Similarly, they made travel to a destination in India or South Asia instead of Europe,"  commented another user Yorick Pinto.

Some of the followers pointed out how the pandemic taught them to spend less on non-essential items.