The effect of inflation is also directly affecting those people, to whom the government is patting its back by saying that 80 crore Indians will be given free ration till Diwali. Inflation affects the common man because a large amount of his monthly expenditure goes on food items. In the country, the common man spends 42 percent of his earnings on food items. Edible oil prices have risen this month to a decade high. Watch Ground Report.