Discretionary products Companies to increase prices by 8-10%
Published On: Friday, November 12, 2021 | By: Team KnowMyStock
Companies and retailers selling discretionary products such as apparel, electronics, liquor, and cosmetics said they will increase prices by 8-10% to offset rising raw material and supply chain costs although it could impact demand for some products. Companies across grocery essentials, personal care products, packaged food, and dining had already raised prices and will make another round of hikes in the new year. The cost challenge comes at a time when retailers across segments breached the pre-pandemic sales mark during the festive season and are trying to sustain the momentum in the next few quarters.
Wholesale inflation, an indicator of input costs for businesses, has been in double digits for over six months now, while retail inflation has declined in recent months to a five-month low of 4.35% in September. This divergence confirms high input cost inflation that has not yet been passed to consumers.
Prices of key inputs such as glass, cotton, steel, copper, chips, and chemicals among others have risen sharply, impacting margins.
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