FMCG firms signal price hikes in Q2 as costs climb

Many companies that make everyday products like biscuits, soap and food are called FMCG companies.

Lately, these companies have to pay more for the raw materials they use, like sugar, palm oil and things made from oil.

When making a product costs more, companies often ask customers to pay a little more too.

Some companies are also making their packs a little smaller instead of raising the price, which is called 'shrinkflation'.

Britannia, a big biscuit maker, says it will make some of its small packs a bit smaller soon.

Godrej, Hindustan Unilever, Dabur and Tata Consumer Products say they may also raise prices in the coming months.

The reason is that many materials are linked to the price of oil in the world, and that price has gone up.

Most companies still think people will keep buying their products, so they are not too worried about selling less.

But Nestle says people might buy a little less in the short term.

Price increases like this are called inflation, and companies are trying to protect their profits while keeping their customers happy.