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Here’s a look at a few things that will soon get dearer.
From matchbox to dining out, everything is set to get dearer. Rising input costs are forcing companies across sectors such as food, cement and FMCG to increase prices. High commodity prices, logistics costs and inflation are escalating costs of raw materials and remain a cause of concern for these industries. Apart from driving in tighter cost control measures, some industries have either raised prices in the previous quarter or are planning to pass on the higher costs to the consumer in the December quarter. (Image: Reuters)
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Faced with high inflation in edible oils, vegetables, and transportation costs, small and large eateries are considering raising food prices. Wow! Momo will hike prices by 7- 8 percent from December, Mint reported. Wow! Momo operates nearly 400 outlets in the country. Jubilant Foodworks-owned pizza chain Domino’s has already hiked prices earlier this year to offset inflationary pressures. Some companies have adopted the “wait and watch” approach before revising menu prices.
Cement: Cement dealers are planning to pass on the surge in input costs like fuel, power, pet coke, logistics, and freight to customers. In October, average cement prices rose by 7-8% year-on-year to Rs 384-386 per 50 kg, according to reports by Economic Times. Analysts believe prices may increase further by 10-15 per cent in the October-December quarter amid escalating raw material costs and a spike in fuel and power prices.
FMCG: Fast-moving consumer goods (FMCG) companies such as Britannia Industries, RSH Global, and Godrej Consumer Products Ltd raised prices in the September quarter after battling inflationary pressures. Britannia, which suffered due to high crude oil prices, raised prices before August. RSH Global, makers of Joy brand of personal care products, hiked prices in May and July. The overall price increase was 8-10%, Sunil Agarwal, co-founder of RSH Global, told Mint.
Consumer durables: Home appliances like refrigerators, televisions and washing machines might see an increase in prices from December. The consumer durables industry has hiked prices in phases by 15-20 percent since January. Barring ACs, most products saw a 3-5% price hike in August to offset input cost rise. But the recent challenge of a power crisis in China may force another round of price hikes by the end of the calendar year. Indian consumer durable companies source nearly 70-75 percent of its components from China.
Steel: Domestic steel companies will hike prices of their products by Rs 2,000-Rs 3,500 a tonne from this month on the back of input cost pressure. Steel firms already raised prices by Rs 1,200-3,000 a tonne in October. Major steelmakers JSW Steel, ArcelorMittal Nippon Steel and Jindal Steel and Power have already raised prices by around Rs 3,000 - Rs 3,500 a tonne, while others are expected to follow soon.
Matchbox: The price of a matchbox is set to double from Rs 1 to Rs 2 in December in view of the rise in production cost. The proposed price rise is the first in 14 years, V.S. Sethurathinam secretary of the National Small Matchbox Manufacturers Association, told PTI. The reason for the hike is the pressure of rising input costs of 14 key raw materials. (Image: India Mart)