1 month ago

Households Feel Price Pinch Amid West Asia Conflict and Monsoon Woes

Households Feel Price Pinch Amid West Asia Conflict and Monsoon Woes
Why are households feeling the pinch of prices? · businesstoday.in

Indian households are feeling the pinch of higher prices due to the ongoing conflict in West Asia and below-average monsoon rains.

The cost of many household items, such as fuel, milk, dairy products, biscuits, detergents, and air conditioners, has increased.

Milk prices have gone up by Rs 2 per litre, and companies like HUL and Britannia have raised prices to offset higher costs.

Retail inflation has risen to 4.38%, and wholesale price index inflation is nearing double digits.

Analysts expect inflation to average around 5%-5.2% this fiscal year, but consumers are cautious about spending due to job cuts and salary uncertainties.

Key facts

Brent Crude Oil Price
Over $90 per barrel
Milk Price Increase
Rs 2 per litre
HUL Detergent Price Increase
5–11%
Retail Inflation (June)
4.38%
Food and Beverage Inflation (June)
5.05%
Wholesale Price Index Inflation (June)
9.87%
Expected Average Inflation
5%-5.2%

Quotes

Upasna Bhardwaj

Chief Economist, Kotak Mahindra Bank

“While the adverse impact El Nino in the past is not very conclusive, any sustained surge in food inflation could flair inflationary expectations. Overall, rural demand may take a hit if food shocks materialise.”
businesstoday.in

Sources

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