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- Iran War Impact: Household Expenses Rise | Kitchen Appliances Cost Up 15%
Mumbai11 minutes ago
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Due to the situation created by tensions in the entire West Asia including Iran, the household expenditure of common Indians is increasing. From kitchen to clothes and home appliances, everything has either become expensive or there is a possibility of their prices increasing.
The rising prices of crude oil have created pressure on many fronts simultaneously. EY India’s analysis says this impact may persist for the next two years. The prices of edible oil have increased by more than 7%. India imports 57% of its edible oil requirement. These include palm oil, soybean and sunflower oil.
Meanwhile, due to increase in the cost of packaging, transportation and raw materials, companies making FMCG products like soap, paste, biscuits will either increase the prices or make the packets smaller. This is called ‘shrinkflation’. Paint, textile and personal care companies are also preparing to increase prices citing rising costs.
FMCG: Supply of products like soap, shampoo, biscuits is also being disrupted.
Crude oil supply has decreased due to the failure of talks between Iran and America on the West Asia crisis. Due to this, on Monday the price of crude increased by more than 8% to above $ 104 per barrel. This led to a shortage of surfactants and petrochemical derivatives. As a result, the supply of products like shampoo and soap has been disrupted. In such a situation, companies are making their packets smaller to avoid increasing the prices.
Consumer durables: Costs increased by 10-15% Manufacturing cost of home appliances has increased by 10-15%. Companies have already passed 70% of this amount on customers. The prices of washing machines, fridges, fans and LEDs have all increased. Now due to the fear of scorching heat, shares of AC companies like Voltas and Blue Star have started rising as their sales are expected to increase rapidly.
Textiles and paints: Prices may increase by 5% this year Due to increase in crude prices, the production cost of plastic has increased by about 50%. In the textile sector, polyester, nylon and color chemicals have become costlier by 20-25%. Synthetic fibers account for 60% of India’s textile production. According to the EY report, due to this, the prices of clothes and paints are likely to increase by 2-5% in the financial year 2026-27 starting from April 1.
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