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Effect of inflation! Rise in prices impacted consumption of daily-use goods: NielsenIQ report

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new Delhi. The effect of inflation is beginning to be seen on the economy. Indian FMCG companies have slowed down their consumption due to the rise in prices of items used by the common man. This thing is being seen in both the urban areas as well as the rural areas. This has come to the fore in a survey.

Indian companies manufacturing everyday use products (FMCGs) faced slowdown in consumption in urban markets and decline in rural areas due to inflation in the year 2021. Data analysis firm Nielsen has said in a report that these companies, troubled by high inflation, were forced to increase prices repeatedly.

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According to industry data released by NielsenIQ, sales volume of fast-moving consumer goods declined 2.6% compared to a year ago, due to a sharp decline in rural demand due to inflation, after five quarters of positive growth Is.

In the year 2021, the FMCG industry had to increase prices in double digits for three consecutive quarters to save its margins. Due to this, the price controlled growth reached 17.5 percent last year as compared to the year 2020. The FMCG Snapshot Report prepared by the retail intelligence team of Nielsen IQ says that even in the October-December 2021 quarter, the FMCG industry suffered a 2.6 per cent decline in consumption due to inflationary pressures.

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Dipanshu Ray, South Asia Cluster Lead, NielsenIQ, said consumers in rural India are turning to smaller pack sizes to cope with inflation. However, the December quarter saw a 9.6% year-on-year growth in value terms for FMCG in India due to continuous increase in prices by large companies. For the full year, the FMCG industry registered a growth of 17.5%.

Non-food categories such as personal care and home care posted a year-on-year decline of 5.9% in the December quarter, while food items were down 1.2%. NielsenIQ said that the non-food categories are facing stress in volumes.

Tags: business news in hindi, inflation

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