4 December 2025 : India’s economy is bracing for a sharp wave of price hikes as the Indian Rupee (INR) breached the ₹90 per US Dollar mark for the first time. The steep depreciation has sent shockwaves through the consumer goods sector, with companies preparing for increased costs across essentials, packaged foods, household items, and electronics.
Industry officials say the currency slide is mainly driven by global economic uncertainty, a stronger US dollar, and weaker foreign investment inflows. Since India relies heavily on imports—especially for raw materials, edible oils, machinery, and electronic components—manufacturers are now facing significantly higher procurement expenses.
Impact on Consumer Goods
Companies in the FMCG, retail, and manufacturing sectors report immediate cost pressure. This includes items such as:
- Packaged foods (biscuits, snacks, oils)
- Personal care essentials (soaps, toothpaste, shampoos)
- Electronics & appliances (mobiles, laptops, TVs)
- Home essentials (detergents, diapers)
Many companies had already been battling rising freight and commodity costs. With the rupee breaching 90, several brands are expected to roll out price hikes of 5% to 12% over the coming weeks.
Imported Raw Materials Hit Hard
A major concern is the sharp rise in prices of imported commodities:
- Crude oil, which influences fuel and transportation costs
- Palm and soybean oil, widely used in cooking and processed foods
- Chemicals used in detergents, cosmetics, and packaging
- Metal components used in home appliances and electronics
Manufacturers say they have no choice but to pass on a portion of the increased costs to consumers.
Consumers May Shift to Cheaper Alternatives
Market analysts predict that retail demand might shift toward:
- Smaller pack sizes
- Cheaper value brands
- Locally manufactured alternatives
However, essentials—like edible oils and packaged foods—are expected to see unavoidable price increases.
What Can Stabilize the Rupee?
Economists note that stabilization could come from:
- Stronger foreign investment flows
- RBI intervention through forex reserves
- Cooling global crude oil prices
- Improved export performance
Until then, both businesses and consumers must prepare for a more inflationary environment.
Summary
The rupee’s fall past 90 per dollar is set to trigger broad price hikes across consumer goods. Import costs for raw materials and essentials have surged, forcing companies to raise retail prices.