Funflation and treatflation drive up costs of small pleasures in India

Two new economic terms, funflation and treatflation, describe the rising cost of experiences and everyday indulgences in India, Livemint reports. Funflation refers to steep price hikes for concert tickets, live sports, theme parks, and weekend getaways. Treatflation covers the growing cost of small luxuries like artisanal coffee, now Rs 350 from Rs 150, and croissants, plus food delivery fees and surge pricing.

The pandemic fueled funflation as pent-up demand for shared experiences met limited supply. Treatflation is driven by frequent small purchases, like a Rs 300 treat three times a week costing nearly Rs 47,000 a year. Workplace treatflation adds pressure: birthday treats, team lunches, and contributions for colleagues can consume tens of thousands of rupees annually due to social norms.

Younger Indians increasingly prioritise experiences over possessions, often using savings or credit, a trend called doom spending. With housing unaffordable for many, money once saved for down payments funds travel and dining. Financial savings are under pressure as entertainment costs outpace incomes, with buy-now-pay-later services making expenses feel painless upfront but burdensome later.