How does it not? How much is a gallon of gas? How much does a dozen eggs cost? What's the cost of a Big Mac? How about a meal at a local restaurant? How much are you having to run your AC or a heater? It may not be the same comparison as India vs the US, which can differ by an order of magnitude, but with gas still more than $3.00 in San Francisco, California vs less than $1.80 in Jackson, Mississippi, I must be missing something on why your expenses don't change.
The only place I've seen fast food cost more is in mountain towns -- taco bell was about .50 more.
I have no A/C, run solar power and my heater is extremely efficient. Diesel usually sticks to 2.50ish everywhere right now, but California does get up to 4.00. so that's an extra expense of about $80 a month?
The cost of goods is so low, it barely registers. Housing tends to be the problem.