Inflation Effect: This time inflation will be affected differently! get ready
New Delhi: Inflation is increasing in the country. The central bank is also worried and is taking steps to control it. The central bank has recently increased the repo rate. Rates are expected to rise again in June as retail inflation hit an eight-year high of 7.79 per cent in April on a year-on-year basis. Meanwhile, news agency Bloomberg said in a report that as India’s inflation continues to rise, cheap single-serve packets such as soap and cookies are becoming lighter (losing weight) while prices are not rising. . As per the report, companies are planning to tackle higher input prices by reducing the weight of low income and popular fixed price items in rural areas.
According to a Bloomberg report, companies including Unilever’s Indian arm, home consumer goods firm Britannia Industries Ltd and Dabur India Ltd have extended their easing packages amid rising prices of edible oil, cereals and fuel. This is nothing new for India. Several food companies, including Subway Restaurants and Domino’s Pizza, have taken similar steps to reduce the cost of their products in the United States. This strategy is being adopted in India when prices for Indian consumers have exceeded the central bank’s target of 6 per cent in the last four months.
Hindustan Unilever Chief Financial Officer Ritesh Tiwari recently said, “We will see more inflation in the next two to three quarters.” He said the only way to absorb the price increase was to reduce the quantity in the fixed price package. Let us tell you that Hindustan Unilever has a huge market in India and its products are widely used.