? Cool Title, but what’s the news?
Prices of daily use products will increase by about 5-8% starting third quarter while some have already increased prices in line with multiple inflationary pressures including all-time high petrol prices, hike in minimum support price (MSP) for farmers, and some commodity prices showing upwards movement, large companies said.
? Okay, but what does it mean?
A recent report by Jefferies said its channel checks suggest that consumer goods giant Hindustan UnileverNSE 1.32 % has taken price hikes in detergents, skin care and select soap brands in the 5-7% range last month.
Parachute hair oil and Saffola edible oil maker MaricoNSE 0.48 % undertook a price increase in its value added hair oil portfolio by 7% while oral care maker Colgate Palmolive increased prices in some of its brands by 4% last month.
This will be the highest prices hike for many companies in two years.? Why should I care?
Analysts said rupee depreciation is likely to drive input cost inflation higher for most companies led by higher packaging costs. Petroleum derivatives are used in packaging material including bottles and tubes, while rise in crude oil prices compounds the effect of higher duties on palm oil, which is used in some food products. Source: Economic Times
