Outbreak of inflation! Effect of Iran war, prices to rise from soap to biscuits; Companies preparing to raise rates

• War will cause inflation

• Many companies are preparing to increase rates

• Now there will be a direct impact on the pocket of common people

The ongoing global tensions and rising crude oil prices are now directly impacting your pocket. Everything from biscuits, soap and cooking oil to household paint is likely to get expensive. Companies manufacturing FMCG (daily consumer goods) and consumer durables (home appliances like TVs and refrigerators), especially due to rising prices of packaging and petroleum-related goods, of price increase are thinking The full effect of this Also on trade happening

According to a TOI report, some companies like Lahori Jeera have hiked the prices of select products since the beginning of the month. Edible oil companies have also hiked prices by Rs 4-5 per litre, according to a report by Nuwama Equities. Meanwhile, due to rising palm oil prices, food companies such as Bikaji, Britannia and Nestlé are also likely to raise rates this quarter.

Price fluctuations

For the past seven to eight years, palm oil prices have fluctuated with crude oil prices. In such a scenario, rising palm oil prices could add to the woes of soap manufacturers like HUL and Godrej, as palm oil is their most important raw material.

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Willingness to Adjust Prices

Tarun Arora, CEO of Zydus Wellness As said, the longer the tensions in West Asia persist, the higher the risk of rising commodity prices. As a solution, companies can reduce the weight of smaller packages, he explained. This means the price will remain the same, but the quantity will decrease. However, prices for larger packages can be directly inflated.

What can increase rates?

The Iran war is now directly impacting your pocket. You can read a list of things that may increase rates now because of this

• Biscuits, soap, oil and even paint are likely to be expensive
• FMC and consumer durables companies are gearing up to raise prices
• The price of edible oil has increased by Rs 4-5 per litre
• Bikaji, Britannia and Nestlé may raise prices this quarter
• HUL and Godrej are also gearing up to hike soap prices

Status of gas-fired plants:

The report also said that several packaged food companies in the country have stopped or reduced production at their LPG-dependent plants.

Implications for the paint industry

Roughly 40% of the raw material used in the paint industry is crude oil, so the impact of rising crude oil prices is already being felt here. Berger Paints, Kansai Nerolac and JSW Dulux have already raised prices last month. Meanwhile, Asian Paints may also raise prices by 6-8% in the coming days. According to the report, the first quarter of financial year 2027 (Q1 FY27) may see pressure on the profitability of companies.

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