FMCG firms signal price hikes in Q2 as input cost pressures persist
India, Aug. 10 -- Rising input costs due to commodity inflation and geopolitical uncertainties are prompting leading FMCG makers to implement calibrated price hikes in the September quarter, as they remain optimistic about demand, citing resilient consumption trends, premiumisation, and improved revenue growth.
The FMCG sector, which took an average hike of around 2-5 per cent in the June quarter, is going for shrinkflation by reducing the grammage weight or selective pricing actions in the current quarter to protect margins, even as they stay watchful of inflationary pressures, crude oil volatility and weather-related risks such as the monsoon and El Nino.
Leading bakery food company Britannia said it expects to add another 1.5 to 2 pe...
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