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Time of India
27-05-2025
- Business
- Time of India
Companies pause packaged food price hikes as input costs stabilise
New Delhi: Makers of grocery staples such as snacks, biscuits and tea have paused price hikes after three back-to-back quarters of 5-10% increases across pack sizes, as key commodity prices like palm oil and wheat stabilise. Executives at companies such as Britannia, Wipro Consumer, Parle Products and Bikaji Foods said they are pausing price increases. Some said they are also bringing back selective consumer promotions to boost sales even as urban demand remains under stress, their executives said. "(While) we see no price reduction or grammage increase in the next couple of quarters, there will be no more price increases for sure," Varun Berry, managing director of Britannia Industries , told ET. While the maker of Nutrichoice biscuits and Laughing Cow cheese did some strategic buying of wheat and flour, most of its commodities are priced at the same level as at the end of FY25, he said. "Flour is just slightly lower than the exit price of last year despite the wheat season," he added. Deepak Agarwal, MD, Bikaji Foods, too, said the snacks firm would not increase prices as some inflation is under control and raw material costs are reducing. "Selective consumer offerings and promotions will be reintroduced to get better market share and momentum," he added. Companies making daily essentials and grocery products had been increasing prices by 5-10% on higher raw material costs while maintaining that they withheld some of the cost pressures amid stagnating sales in cities. With food inflation expected to remain low, company executives expect their retail prices to remain steady. "Core inflation will likely remain range-bound, led by weaker commodity prices, softer growth and a stronger rupee," HSBC Research said in a report released on Monday. This, it said, is a relief for consumers and "may fuel the purchasing power of households." Anil Chugh, president, food business, at Wipro Consumer Care , said the overall food inflation is expected to remain in the region of 3-4% in the coming two quarters. "This is because of commodity prices stabilising, expected good monsoon and companies taking cautious approach to price increases," he said. Wipro Consumer Care makes Nirapara ready-to-cook foods and Granamma snacks. "For 3 quarters, prices were increasing," said Mayank Shah, vice president at Parle Products. "Now the hikes have been paused as some commodities are stable. Some key commodities are still higher than a year ago, but what's happened is that the rate of inflation has come down for now." The food inflation rate dropped to 1.78% year-on-year in April 2025, compared to a year-on-year Consumer Food Price Index of 10.87% in October 2024, according to government data. "Going forward, we expect tea pricing/ tea costs to soften rather than pricing going up (if the tea crop is normal). So, therefore, margins will come back," Sunil D'Souza, managing director, Tata Consumer Products , said in a quarter four post earnings call. NielsenIQ in its January-March quarter update earlier this month had said the FMCG industry grew 11% year-on-year by value, driven by a 5.6% price hike. Growth of packaged foods slowed to 4.9% in the January-March quarter compared to 6% in the fourth quarter of 2024, which the report attributed to declining lower volumes in edible oils and palm oil, impacted by higher prices. The past three quarters had seen surging prices of wheat (which increased 17.4% year-on-year in the March quarter), palm oil (17.2%) and cocoa (78%).
Time of India
26-05-2025
- Business
- Time of India
Companies pause packaged food price hikes as input costs stabilise
New Delhi: Makers of grocery staples such as snacks, biscuits and tea have paused price hikes after three back-to-back quarters of 5-10% increases across pack sizes, as key commodity prices like palm oil and wheat stabilise. Executives at companies such as Britannia, Wipro Consumer, Parle Products and Bikaji Foods said they are pausing price increases. Some said they are also bringing back selective consumer promotions to boost sales even as urban demand remains under stress, their executives said. "(While) we see no price reduction or grammage increase in the next couple of quarters, there will be no more price increases for sure," Varun Berry, managing director of Britannia Industries , told ET. While the maker of Nutrichoice biscuits and Laughing Cow cheese did some strategic buying of wheat and flour, most of its commodities are priced at the same level as at the end of FY25, he said. "Flour is just slightly lower than the exit price of last year despite the wheat season," he added. Deepak Agarwal, MD, Bikaji Foods, too, said the snacks firm would not increase prices as some inflation is under control and raw material costs are reducing. "Selective consumer offerings and promotions will be reintroduced to get better market share and momentum," he added. Companies making daily essentials and grocery products had been increasing prices by 5-10% on higher raw material costs while maintaining that they withheld some of the cost pressures amid stagnating sales in cities. With food inflation expected to remain low, company executives expect their retail prices to remain steady. "Core inflation will likely remain range-bound, led by weaker commodity prices, softer growth and a stronger rupee," HSBC Research said in a report released on Monday. This, it said, is a relief for consumers and "may fuel the purchasing power of households." Anil Chugh, president, food business, at Wipro Consumer Care , said the overall food inflation is expected to remain in the region of 3-4% in the coming two quarters. "This is because of commodity prices stabilising, expected good monsoon and companies taking cautious approach to price increases," he said. Wipro Consumer Care makes Nirapara ready-to-cook foods and Granamma snacks. "For 3 quarters, prices were increasing," said Mayank Shah, vice president at Parle Products. "Now the hikes have been paused as some commodities are stable. Some key commodities are still higher than a year ago, but what's happened is that the rate of inflation has come down for now." The food inflation rate dropped to 1.78% year-on-year in April 2025, compared to a year-on-year Consumer Food Price Index of 10.87% in October 2024, according to government data. "Going forward, we expect tea pricing/ tea costs to soften rather than pricing going up (if the tea crop is normal). So, therefore, margins will come back," Sunil D'Souza, managing director, Tata Consumer Products , said in a quarter four post earnings call. NielsenIQ in its January-March quarter update earlier this month had said the FMCG industry grew 11% year-on-year by value, driven by a 5.6% price hike. Growth of packaged foods slowed to 4.9% in the January-March quarter compared to 6% in the fourth quarter of 2024, which the report attributed to declining lower volumes in edible oils and palm oil, impacted by higher prices. The past three quarters had seen surging prices of wheat (which increased 17.4% year-on-year in the March quarter), palm oil (17.2%) and cocoa (78%).
Indian Express
13-05-2025
- Business
- Indian Express
Retail inflation rate eases to near six-year low of 3.16% in April
Retail inflation rate slipped to a 69-month or near six-year low of 3.16 per cent in April, primarily due to moderation in prices of food items including vegetables, pulses, cereals, meat and fish, data released by the National Statistics Office (NSO) showed. This marked the sixth month of a downward trajectory in retail inflation, the lowest inflation level after July 2019 and the third successive month of inflation rate remaining below the Reserve Bank of India's band of 4+/- 2 per cent for medium-term inflation targeting. Food inflation, based on the Consumer Food Price Index (CFPI), moderated for the sixth consecutive month, easing to a 42-month low of 1.78 per cent in April from 2.69 per cent a month ago and 8.7 per cent in April 2024. Vegetables recorded a deflation of 10.98 per cent in April, the sharpest pace of decline since February 2023, while pulses also recorded a deflation of 5.23 per cent in April as against a deflation of 2.73 per cent in the previous month, marking the fastest fall in prices over six years. The meat and fish segment registered a fall in prices to (-) 0.35 per cent after a gap of 22 months in April 2025, while the cereals inflation slipped to a 35-month low of 5.3 per cent due to better kharif output. 'The easing of food inflation would help in bringing relief to households and the consumption demand as we begin the new fiscal,' Paras Jasrai, Associate Director, India Ratings and Research said. Going ahead, a favourable monsoon should help keep inflation in control, raising expectations of a rate cut by the RBi in the upcoming June monetary policy review meeting. 'A record rabi harvest and robust pulses output indicated by the Union Ministry of Agriculture's Second Advance Estimates, and the forecast of a favourable monsoon for the upcoming kharif season should keep food inflation in check this fiscal. Given the current inflation trajectory, a further 25-basis point rate cut is expected in the Reserve Bank of India's monetary policy review in June,' a CRISIL report said. While the overall inflation in FY26 is seen below 4 per cent, the cumulative rate cut in FY26 would depend on the pace of decline in inflation and evolving inflation-growth dynamics, economists said. The decline in retail inflation was sharper in rural areas than urban areas, which is expected to increase the recovering rural demand. Rural retail inflation was recorded at 2.92 per cent in April as against 3.25 per cent in March, while urban inflation declined to 3.36 per cent in April from 3.43 per cent in March. Food inflation in rural areas eased to 1.85 per cent in April from 2.82 per cent in March, while that in urban areas moderated to 1.64 per cent in April from 2.48 per cent in March. The declining trend, however, was not uniform as fuel and light and core inflation saw an uptick. Fuel and light inflation rate rose to 2.92 per cent in April from 1.48 per cent in the previous month. Core inflation — the non-food, non-fuel segment of inflation — remained firm at 4.1 per cent in April, the highest level since November 2023, indicating signs of demand being steady, Jasrai said. Retail inflation (excluding vegetables and pulses) shot up to an 18-month high of 4.4 per cent in April, he said. Some economists differed on the view that the lower inflation print will lead to a rate cut, saying that while the headline inflation print is within RBI's forecast for Q1, it will take note of the fact that the decline is mainly due to lower food prices. 'While 3.2% is within RBI's forecast of 3.6% for Q1, the central bank will be cognizant of the fact that the number has come down mainly due to vegetables which have a weight of 6 per cent in the index. Excluding this component keeps inflation at the target rate. Therefore, this factor will be kept in mind. It does look like that this number may not trigger a rate cut given that there would be time to evaluate both the monsoon and tariff issues before taking a final call in August. Inflation would likely be low in May and June too due to the base effect,' Madan Sabnavis, Chief Economist, Bank of Baroda said. Aanchal Magazine is Senior Assistant Editor with The Indian Express and reports on the macro economy and fiscal policy, with a special focus on economic science, labour trends, taxation and revenue metrics. With over 13 years of newsroom experience, she has also reported in detail on macroeconomic data such as trends and policy actions related to inflation, GDP growth and fiscal arithmetic. Interested in the history of her homeland, Kashmir, she likes to read about its culture and tradition in her spare time, along with trying to map the journeys of displacement from there. ... Read More
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Business Standard
13-05-2025
- Business
- Business Standard
India's retail inflation eases to 3.16% in April; lowest since July 2019
India's retail inflation dropped to its lowest level since July 2019, with the year-on-year Consumer Price Index (CPI) for April 2025 recorded at 3.16 per cent, according to data released by the Ministry of Statistics and Programme Implementation on Tuesday. The April figure reflects a decline of 0.18 percentage points from March's 3.34 per cent, marking a steady easing of prices. CPI-based inflation has now stayed below the Reserve Bank of India's medium-term target of 4 per cent for the third consecutive month. Robust harvest despite intense heatwaves drove down food costs, which account for nearly half of the consumer price basket. Food prices lowest since October 2021 The Consumer Food Price Index (CFPI), which tracks inflation in food items, showed a sharp decrease to 1.78 per cent in April 2025, down from 2.69 per cent in March. This is the lowest food inflation rate recorded since October 2021. The fall in food inflation is attributed to price declines in key categories such as vegetables, pulses, fruits, meat and fish, cereals, and personal care items. April retail inflation: Rural vs urban In rural India, headline inflation dropped to 2.92 per cent in April from 3.25 per cent in March. Urban areas also saw a dip, with inflation falling to 3.36 per cent from 3.43 per cent in the same period. The overall combined CPI index rose marginally to 192.6 in April from 192.0 in March. Rural areas experienced a food inflation of 1.85 per cent, while urban areas saw a slightly lower figure of 1.64 per cent. Housing: Urban housing inflation stood at 3.00 per cent, slightly down from 3.03 per cent in March. Education: Inflation in education services rose to 4.13 per cent from 3.98 per cent. Health: Health-related inflation remained nearly flat at 4.25 per cent, compared to 4.26 per cent in March. Transport and communication: Inflation rose to 3.73 per cent, up from 3.36 per cent the previous month. Fuel and light: Inflation rose to 2.92 per cent from 1.42 per cent. April retail inflation: Kerala saw highest, Telangana lowest Kerala recorded the highest combined year-on-year inflation rate at 5.94 per cent, followed by Karnataka (4.26 per cent), Jammu & Kashmir (4.25 per cent), Punjab (4.09 per cent), and Tamil Nadu (3.41 per cent). Telangana reported the lowest at 1.26 per cent. India's wholesale price index (WPI)-based inflation for April 2025 will be released on Wednesday, May 14. RBI FY26 inflation forecast At its bi-monthly policy meeting in April, the RBI projected CPI-based inflation for the current financial year (FY26) at 4 per cent, assuming a normal monsoon. Notably, inflation in the April–June quarter (Q1) is expected to dip as low as 3.6 per cent, revised sharply down from an earlier estimate of 4.5 per cent. Retail inflation cooled to a seven-month low of 3.61 per cent in February 2025, slipping below the RBI's medium-term target of 4 per cent for the first time since August 2024 and has steadily declined in the subsequent two months. RBI's quarter-wise CPI inflation forecasts for FY26 are as follows: FY26 Q1: 3.6 per cent FY26 Q2: 3.9 per cent FY26 Q3: 3.8 per cent FY26 Q4: 4.4 per cent A Reuters poll conducted in March also expects average inflation to hover around 4 per cent for the year. RBI MPC repo rate cuts The RBI's Monetary Policy Committee (MPC) unanimously voted to cut the repo rate by 25 basis points to 6 per cent and shifted its policy stance to 'accommodative', signalling room for further rate reductions. The next meeting of the RBI's MPC is scheduled for June 4–6. CPI data for May 2025 will be released on June 12, 2025.
Indian Express
05-05-2025
- Business
- Indian Express
Is cost of living in Indian cities going out of control? Bengaluru-based IITian triggers discussion, netizens agree
Urban hubs like Bengaluru, Mumbai, and Delhi have experienced a sharp rise in housing rents, fuel prices, utility bills, and everyday essentials in recent years. Several affected people continue to flag the inflation on social media. Recently, an IIT Bombay graduate living in Bengaluru raised alarm over the rising cost of living in India. Monali Dambre, in her X post, mentioned that her grocery bills in Bengaluru are getting 'unusually high.' 'I'm slowly coming to terms with the fact that the cost of living in India is getting really expensive—even in smaller, tier-3 cities. And honestly, I'm starting to feel genuinely worried about how the lower and middle class are managing to survive… or how they're going to survive in the next few years,' Dambre wrote on X. 'Even in Bangalore, my grocery bills (which include only absolute staples—nothing fancy or luxurious) are starting to feel unusually high. Just basic fruits, veggies, and daily essentials—and it still feels like thing have got expensive than they should have,' she added. See the post here: I'm slowly coming to terms with the fact that the cost of living in India is getting really expensive—even in smaller, tier-3 cities. And honestly, I'm starting to feel genuinely worried about how the lower and middle class are managing to survive… or how they're going to… — Monali (@monali_dambre) May 3, 2025 Dambre's observation quickly gained traction, racking up over four lakh views. Several social media users agreed with her, sharing their personal struggles living in an urban setup. 'Earn to living cost ratio is really bad in poor countries like India. Rent, medical, transportation, education, food everything is many times more expensive than developed countries when you compare with earning there,' a user wrote. 'Yes the inflation on food and groceries is way too high. In general cost of living has increased bar above the usual 5-6% annual year on year limit,' another user commented. 'In Bengaluru the cost of living with 2 kids will easily cross 2 lpa for a really average life. I think the GST is hiking prices of everything,' a third user reacted. Retail inflation in India dropped to a seven-month low of 3.61 per cent in February, down from 4.26 per cent in January, driven largely by a significant decline in food prices, according to provisional data released by the National Statistics Office (NSO) in March. Food inflation, as measured by the Consumer Food Price Index (CFPI), eased to 3.7 per cent—its lowest level since May 2023, when it stood at 3.19 per cent. The Consumer Price Index (CPI), which tracks overall retail inflation, showed a broad decline across both rural and urban areas. In rural regions, inflation fell to 3.79 per cent in February from 4.59 per cent the previous month, while in urban areas, it dropped to 3.32 per cent, down from 3.87 per cent in January.
