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Let the initial price and initial consumption of rice be Rs. '100m' per kg and 'n' kg respectively.
Initial expenditure = 100m × n = Rs. '100mn'
New price = 1.25 × 100m = Rs. '125m'
New consumption = (100mn / 125m) = (100n / 125) kg
Decrease in consumption = n - (100n / 125) = (25n / 125) kg
Required percent = [(25n / 125) ÷ n] × 100 = (2500 / 125) = 20%
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