Prices may be likely to hike before 2022 on cosmetics, garments, liquor and electronic devices due to inflation

Prices of garments, electronics, liquor, and cosmetics are expected to rise by eight to 10 percent in the coming months. Companies have attributed the rise in production costs to rising raw material prices. Rising prices are likely to affect demand for these products.

Along with raw materials, the cost of the supply chain has also increased. The sharp rise in diesel prices has led to an increase in freight traffic. Those companies that are offering personal care packaged food and dining services from food grains have already raised prices.

At the beginning of the new year 2022, the garment, electronics, liquor, and cosmetics companies may also consider raising rates. The price hike comes at a time when sales of these products have broken pre-crisis sales records.

Festivals like Dussehra, Diwali, Chhat Puja, etc. have led to a huge increase in sales of products and services in India. This demand is expected to remain the same for the next few days till Christmas.

Ashish Dixit, managing director of Aditya Birla Fashion and Retail, told analysts that when inflation affects you through organic and material, companies have no choice but to raise prices.

Wholesale inflation is an indication of rising costs for industries. Inflation has been double-digit for the last six months. The wholesale inflation has eased in the last few months. But rising inflation has pushed up corporate spending.

Dev Ranjan Nair, CEO of Lifestyle International, told NBT that the rise in raw material prices was unprecedented. These rates are increasing every month. This will allow companies to increase their productivity without increasing the cost.

The companies have been trying to bear the cost for some time. However, in order to balance profit and loss, it is now necessary to raise prices. Companies will take steps to increase prices due to rising fuel and freight rates.