Consumer goods companies are set to raise prices in August – this will be the third increase in most categories this year. The reason for this is the fluctuations in the prices of raw materials and high freight costs due to the ongoing conflict in West Asia, along with fluctuations in currency prices are also being said to be one of the reasons for this. Quoting industry officials, the ET report said that from next month, the prices of many products like packed tea, hair oil, refrigerators, television, clothes and passenger vehicles may increase by 6-8 percent. Companies hope that this will be the last round of price increase before the festive season starts, which will not affect demand much. The festive season starts with Onam in Kerala in August and continues in full swing from Navratri till Diwali, which is in November this year.
The burden on the pockets of common people will increase
Higher India Chief Executive Satish NS said that we were hopeful that the situation would stabilize as the West Asia crisis subsides. But due to recent tensions, prices will have to be increased again as exchange rates remain volatile and commodity and crude derivative prices remain high. The industry has not yet passed the entire burden of cost increase on the customers, which will be done now. Arvind Fashions, which sells Calvin Klein and Tommy Hilfiger in India, has also indicated that it may change the prices. Chief Executive Ameesha Jain told analysts last week that the company was taking proactive steps to protect profits amid the long-running conflict in West Asia, including tighter cost controls and possible price changes.
Price of branded clothes will increase
Clothing brands had so far avoided major price increases by selling old stock purchased at low cost. However, the new season goods purchased at higher prices are now reaching the stores, due to which it has become necessary to increase the prices. Due to tension in West Asia, many companies may increase prices by 8 percent in August. Higher input prices, freight charges and fluctuations in rupee value are having an impact. Consumer electronics companies are planning to increase prices by 4-6 percent in all categories from August. Prices of refrigerators and washing machines have already increased by more than 10 percent this year, while television prices have increased by more than 15 percent, due to the higher cost of memory chips and shortage in supply. Smartphone prices are also increasing as memory chip prices have more than tripled in the last eight-nine months.
Cars are also going to become expensive
India’s largest carmaker Maruti Suzuki will increase prices by Rs 30,000 from August – its second hike this financial year – to partially offset the increase in input costs. Honda Cars India will also increase prices from August 1, while Mercedes-Benz India is planning to increase prices in the next quarter to compensate for the falling rupee. Tata Motors and Mahindra & Mahindra had increased the prices earlier this month. Mercedes-Benz India Managing Director Santosh Iyer said that the company is closely monitoring the currency changes before deciding the quantum of price increase. He said that although spending on luxury goods still remains healthy, import costs and geopolitical uncertainties remain challenges for the industry. The company had increased prices by 4 percent overall in the first half of 2026.
Price of FMCG products
For FMCG companies, the conflict has led to increased price volatility of petroleum-related inputs, such as linear low-density polyethylene and packaging materials. Both Tata Consumer Products and Bajaj Consumer Care mentioned inflationary pressures during earnings calls this month. Naveen Pandey, Managing Director of Bajaj Consumer Care, said in the ET report that the industry is once again facing the problem of increasing input costs. Margin pressure is likely to persist in the September quarter, after which there may be gradual relief. He stressed that despite it being the harvesting season, prices of edible oils, including mustard and almond oil, were unusually high. Despite high prices, companies are hopeful about demand. Havells India Chairman Anil Rai Gupta said that customers have easily accepted the price increase so far.
Leave a Reply