FMCG Makers To Go For Around 10% Price Hike To Mitigate Inflationary Pressures

Synopsis- Hindustan Unilever and Nestle reportedly raised prices of food products recently. Making a similar move, companies like Dabur and Parle are keeping an eye on the situations before taking an action.

The ongoing situation seems to be a cutting hole in the pockets of consumers who now will have to pay more for FMGC (Fast-moving consumer goods) items. Companies are thinking of having another round of price hikes of over 10 percent in order to cover the impact of inflation. The goods that will face the heat of price hike, include wheat, palm oil, and packaged goods.

Meanwhile, Hindustan Unilever and Nestle reportedly raised prices of food products recently. Making a similar move, companies like Dabur and Parle are keeping an eye on the situations before taking an action. As per reports, the companies will undertake any decision after examining the inflationary pressures.

Reportedly, experts have predicted a price hike of approximately 10%. The prices are not only going to be affected by inflation but also the geopolitical issues such as the Russia-Ukraine war are adding fuel to the fire. The markets continue to fluctuate as just a few days ago, the prices of crude oil prices went past $100 a barrel recording the highest mark ever and now the prices are below $100 a barrel.

As per the industry leaders, companies are very skeptical of increasing the prices on FMCG products that were showing the revival in demand in the post-pandemic era and an increase in prices would lead the market on backward steps. Similarly, the last time companies only went for the mitigation of some part of the impact rather than absorbing it completely.

What is Inflation?

Inflation is a rate of rising prices in a given period of time in an economy. Precisely, in a scenario where general price shows the increasing trend, per unit of currency could only buy fewer goods and services, which in turn leads to minimization of purchasing power of money. There are several factors that affect inflation, ranging from market to geopolitical.

On the other hand, the opposite of inflation is ‘Deflation’ which is determined through the decreasing trend of prices of goods and services.