Expensive living? Inflation hits coriander to cars in India

The next time you pick up a packet of biscuits, a tube of toothpaste or a bottle of hair oil, you may find that the price has changed — or that there is slightly less inside the pack.

Indian companies across consumer goods, automobiles, tyres and paints have either already raised prices or signalled further increases, as higher commodity, packaging, freight and energy costs put pressure on margins.

The latest round is not one giant price shock. It is spreading across individual products and categories.

Tata Consumer Products has raised the price of a salt pack from ₹30 to ₹32. Britannia is considering another 1.5-2% pricing action for biscuits. Dabur has taken price increases across parts of its portfolio, while Hindustan Unilever expects continued input-cost pressure. Colgate-Palmolive India has also left room for further price increases

Outside consumer goods, JK Tyre is planning a total 11-13% price increase by September-end. Tata Motors has announced a hike of up to ₹25,000 on passenger vehicles from September 1, while Hyundai Motor India has announced a hike of up to 1% from September. Maruti Suzuki has also raised prices by up to ₹30,000.

The pressure comes as India’s retail inflation has moved above the Reserve Bank of India’s 4% target. Consumer inflation rose to 4.45% in July from 4.38% in June, while food inflation rose to 5.52%, according to the Ministry of Statistics and Programme Implementation. Inflation remains within the RBI’s 2-6% tolerance band, but policymakers are watching whether higher food, fuel and other input costs spread across the economy.

Kitchen inflation: even coriander is costing more

The squeeze is most visible in the everyday kitchen basket.Coriander, traditionally the little extra often handed out free with a vegetable purchase, has crossed ₹220 a kg in some markets after heavy rains disrupted supplies, according to The Economic Times. Prices of ginger, garlic and onions have also come under pressure.

Sugar is another concern. Prices have risen sharply this month, prompting the government to allow duty-free imports of 1 million tonnes of raw sugar until October 31 to improve domestic availability ahead of the festive season. Reuters reported that domestic sugar prices had risen nearly 40% over two months.

Also Read: Free dhaniya no more? India’s kitchen is feeling a new food squeeze

Rice is another unavoidable part of the household basket. Prices have also moved higher, although the extent varies across regions.

Unlike a biscuit packet, there is no easy way to shrink the quantity of rice on the dinner plate. When staples such as rice, sugar, cooking oil and vegetables rise together, the impact goes directly into the monthly grocery bill.

Hair oil is already getting pricier

Dabur India offers a clear example of how FMCG companies are responding to higher costs.

The company has taken price increases across parts of its portfolio and has also used pack-size changes at lower price points.

Dabur’s hair-oil portfolio grew around 18% in value in the June quarter, with volume growth at 8%. CEO Mohit Malhotra said roughly half of the value growth came from volume and half from price increases, which the company took in response to higher crude-linked input costs.

Dabur’s consolidated net profit rose 15% to ₹591 crore in Q1 FY27, while revenue increased 10.6% to ₹3,764 crore. Its India FMCG business grew 9.5%, with underlying volume growth of 5%, according to the company’s quarterly results.

Also Read: Dabur Q1 updates: Co expects double-digit revenue growth as rural demand stays ahead of urban

For consumers, the distinction is important. When value growth is substantially higher than volume growth, part of the increase comes from consumers paying more.

Biscuits: the ₹5 packet could get smaller

Britannia Industries is considering another round of pricing action.

The company has indicated that it could take another 1.5-2% pricing action in the September quarter as sugar, palm oil and fuel costs remain elevated.

Consumers may not necessarily see a higher MRP. Britannia’s ₹5 and ₹10 packs are particularly price-sensitive, making smaller pack sizes one possible way of managing higher costs.

That is shrinkflation: the consumer continues to pay ₹10 but gets less product.

For a household buying one biscuit packet, the difference may be difficult to notice. Across several products, however, the effective cost of the weekly grocery basket can rise.

Soaps, detergents and toothpaste are on the watchlist

Hindustan Unilever expects 2-5% sequential input-cost inflation in the September quarter compared with June, with pressure from palm oil, crude derivatives, tea, coffee, milk and packaging materials.

The company has said it will respond through calibrated pricing across categories covering soaps, detergents and personal care.

The 2-5% figure refers to expected input-cost inflation, not a blanket 2-5% price increase across HUL products.

Colgate-Palmolive India is also facing higher input costs and has put further price hikes on the table. The company reported 12% revenue growth to ₹1,591 crore in Q1 FY27, while net profit rose 7% to ₹343 crore. Its toothpaste portfolio recorded high-single-digit volume growth.

At its annual investor day, CEO and MD Prabha Narasimhan said inflation “will be an issue” and indicated that the company may take further price increases in the coming quarters to protect margins as commodity costs rise. Colgate has already taken low-single-digit pricing in the recent past.

Salt, tea and cooking oil are moving differently

Tata Consumer Products has already increased the price of a salt pack from ₹30 to ₹32.

Its June-quarter results show why FMCG companies are approaching pricing differently across categories. Salt revenue grew 7%, supported by steady volumes. In tea, India volumes rose 2%, while revenue was lower as the company passed lower tea costs on to consumers.

Cooking oil is facing a different set of pressures.

Also Read: Tata Consumer likely to take ‘calibrated’ price hikes if cost woes persist; eyes double-digit FY27 growth

India is heading for heavy soyoil imports as disruptions to sunflower-oil shipments from Russia and Ukraine alter the country’s import mix. Patanjali Foods has also taken calibrated price increases in its edible-oil business, according to its latest earnings commentary.

For households, cooking oil is difficult to eliminate from everyday consumption. Consumers can switch between varieties, but the underlying expense remains.

Tyres: owning a car is getting more expensive

The price pressure extends beyond the supermarket.

JK Tyre plans to raise prices by 11-13% by the end of September, including another 5-6% increase over the next two to three months. The company has cited higher costs of natural and synthetic rubber, carbon black and steel.

That means higher costs even for people who are not buying a new car. The impact will be felt when a set of tyres needs replacement.

Cars: another ₹25,000 before the festive season

For new-car buyers, the increase is more immediate.

Tata Motors Passenger Vehicles has announced a price increase of up to ₹25,000 from September 1 across its passenger-vehicle portfolio.

Also Read: Tata Motors to hike car prices by Rs 25,000; joins Maruti, Hyundai as costs hurt pockets

Hyundai Motor India has separately announced a price increase of up to 1% from September across its portfolio, citing higher input and commodity costs and other operating expenses.

Maruti Suzuki has also raised prices by up to ₹30,000 from August, its second portfolio-wide increase in about two months.

For a festive-season buyer, the higher ex-showroom price comes before registration, insurance and financing costs.

ACs and paints have already become costlier

The increase is not limited to products bought every week.

Air-conditioner prices rose by around 5-15% between February and April, according to industry reports, as manufacturers faced higher copper and other raw-material costs, freight expenses, a weaker rupee and new energy-efficiency requirements.

Asian Paints also raised prices by around 12% in July as input costs increased. The company, however, does not currently plan another immediate price increase and is looking at cost efficiencies and other measures to protect margins.

RBI is watching for a broader inflation problem

The wider concern is whether individual price increases begin feeding into general inflation.

The RBI kept the repo rate at 5.25% at its August policy meeting. But Governor Sanjay Malhotra warned: “We also need to be watchful as the risks of higher food, fuel and other input prices translating into a broad-based increase in inflation and de-anchoring of expectations persist.”

“Any evidence of these risks materialising may need policy tightening,” he added.

MPC member Poonam Gupta said there was “no scope for further monetary policy easing” and indicated that a rate hike could emerge later in the financial year if inflation pressures persist.

The RBI has not announced a rate hike. The August decision remains a pause at 5.25%.

But the message is clear: if higher food, fuel and input costs begin feeding into wider inflation, rate cuts could give way to rate hikes.

For households, inflation does not arrive as one percentage.

It is showing up at the vegetable stall, in the grocery aisle, at the tyre shop and in the car showroom.