Commodity inflation is moving northwards and there is a sense that consumer durables shall see an hike by as much as 3-5 percent. Also there is an import curb and all of the metals including steel, copper among others have been recording gains of 5-11 percent.
From next month, household appliances like washing machines, refrigerators, television sets and air conditioners will get expensive by at least 3-5 per cent. The reason:
Commodity inflation is raising its head, forcing companies to consider price hikes.
Similar is the scene with an important housing sector material cement which as CLSA has firmed up by Rs. 5- Rs. 15 per bag across regions. "Inflation hits the real estate sector at two levels. One, it drives up rentals. And it aggravates the ownership and maintenance cost of properties. There is a downward pressure on revenues, coupled with the pandemic-proof trends rung in by the 'new normal' due to inflation. All of this does not augur well for cash-strapped incumbents", managing director of RMZ said.
Also amid a hike in construction costs and amid the weakness in the housing market, prices will not be easy to increase.
Another industry consumer durable do not see things on similar line and said price hikes cannot be ruled out."Manufacturers had withheld price hikes despite hardening commodity prices during the festive season. But price hikes from December are likely as commodity prices continue to firm up. Plus, there are challenges on the import front leading to a shortage in supplies. That will affect the price of products," he says.
Also, restriction on imports from China is also an important concern as the demand amid the pandemic for products including washing machine, microwave, kitchen appliances etc. remains high.
Auto companies like TVS Motors and Ashok Leyland have brought about an hike in price to set off hike in prices.