Rising prices at all levels to welcome consumers in the new year

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“Accept certain inalienable truths.

Prices will go up

politicians will hang out

And you too will grow old.

The aforementioned saying has only grown in popularity over time, and it is no further from the truth. As the bells ring for a new year and we add another year to our lives, prices across the board will hit a new high.

Blame it on inflation or the impact of COVID-19, but the point is that the purchasing power of average Indians will take another blow, in 2022. Everything from rice and vegetables to bikes and cars, should become more expensive.

As many FMCG manufacturers struggle to contain rising raw material costs and not pass it on to consumers because the market is still not positive enough, some experts believe it will be a battle. lost in advance.

Meanwhile, in the wake of telecom operators, auto majors have decided to ring the cat, already announcing price hikes from January. Market leader Maruti Suzuki has also taken the lead here, announcing price hikes for models in its Nexa and Arena lineup – the new tariffs are expected to be revealed later this week. This will be the fourth price hike for the Gurugram-based company, which has also suffered a shock due to rising component costs as well as a severe shortage of semiconductors.

Others are expected to increase their prices in the new year: Tata Motors (2.5% increase in cost of all commercial models), Volkswagen (3-5% increase), in addition to Skoda, Citroën and Audi, all raising prices by 3%. . Mercedes-Benz announced a 2% increase. The price of all Toyota vehicles will also become more expensive, but the exact figure is still unknown.

Hero MotoCorp, the world’s largest two-wheeler manufacturer, has also decided to increase the price of its bikes from January 4.

If you thought it was all about automobiles, think again – everything from rice and pesto to pulses and staples has gone up in price or under intense pressure on markets. price. The reason is a mix of post-COVID economic flows, where a mix of elements, ranging from uneven growth due to excess funds in the system, supply chain issues and an increase the cost of many commodities that have a domino effect in retail markets.

In fact, inflation, an otherwise boring government statistic, should be of concern to all ordinary citizens – according to the Commerce Department, headline wholesale inflation topped 14% last month, the highest since 1991. Specifically, food prices increased by almost 5%, gasoline and electricity costs by almost 40%, while manufactured goods increased by almost 12%.

With retail price inflation still around 5% (mainly due to rising prices for food items like rice), the problem with high wholesale price inflation numbers is that it could soon spill over into retail sales, the point where we, the consumers, are affected.


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