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NEW DELHI (December 27, 2025) — The start of 2026 will bring a significant reshuffle in household budgets as prices for everyday items from cars to cooking gas are set to move. While consumers will pay more for vehicles and electronics, relief is expected in fuel costs and government salaries, creating a complex economic shift as the new year begins.
Indian consumers face a reset in their finances with the new year, as manufactured goods prices climb and fuel prices may fall. The main drivers are global supply pressures, domestic tax regulations, and regulatory updates that will immediately impact spending and purchases.
What Will Become More Expensive from January 1?
A broad range of consumer durable goods are slated to become costlier, primarily due to increased costs for imported components and raw materials. The most immediate impact will be felt by anyone planning to buy a vehicle.
Cars and Motorcycles: Major car manufacturers have announced price increases. Luxury names like Mercedes-Benz, BMW, and Audi, together with mass-market brands including Maruti Suzuki, Hyundai, Mahindra & Mahindra, Renault, and Triumph, plan hikes of up to 2-3% across all models.
Electronics and Appliances: Imported device prices are rising as global chip shortages continue and the rupee weakens. Price increases of 3–10% are expected for gaming consoles, laptops, tablets, mobile phones, and televisions. Large appliances like air conditioners and refrigerators could also become costlier by up to 10%.
General Imported Goods: Many consumer items are set to become costlier, especially products dependent on imported ingredients.
What Prices Are Expected to Fall or Be Revised?
CNG and PNG: Prices for Compressed Natural Gas (CNG) and Piped Natural Gas (PNG) are expected to decrease due to changes in the central government’s tax structure, offering relief for household kitchens and vehicle owners.
LPG and ATF: On January 1, there will be an official revision to the prices of household LPG cylinders and Aviation Turbine Fuel (ATF), which may result in lower cylinder costs. A change in ATF price influences airline operating costs and could affect airfares.
Global Commodity Forecast: The World Bank predicts a drop in global commodity prices in support of this trend, estimating that Brent crude oil will average $60 per barrel in 2026—a five-year low.
What Other Key Financial Changes Are Coming?
Beyond market-driven price movements, several mandated financial changes will take effect.
Government Salaries: A major salary and pension revision is expected from January 1 with the implementation of the 8th Pay Commission for government employees.
Banking Rules: Individual credit records will be updated every week rather than once a month, and PAN-Aadhaar linkage will be required to use complete banking services.
Taxation: A new pre-filled Income Tax Return (ITR) form is expected to be introduced to make filing easier while tightening data checks.
Real Estate Investment: A regulatory change will see Real Estate Investment Trusts (REITs) classified as equity for mutual funds, which may increase investment flow into the real estate sector.
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