Prices of consumer goods to go up: Assocham

Prices of consumers goods are likely to rise further over the next six months, the Associated Chamber of Commerce and Industry of India (ASSOCHAM) said Monday, basing its prediction on a country-wide survey. Over 80 percent of the business leaders, who participated in the survey, expected higher prices for their products, including consumer durables, consumer non-durables, intermediate goods, capital goods and services and infrastructure, for over next six months, said a Assocham spokesman. A total of 226 business leaders, representing firms of various sizes across diverse sectors, across the country participated in the survey. He said while private sectors firms remained upbeat about the price rise of their products, the public sector firms were not so optimistic about the same in near future. “If we distinguish the responses between MSME firms and large size classes, the former have expressed greater confidence about price rise in the short-run,” he said. “On the other hand, public sector respondents as compared to private sector firms have expressed weak confidence about short-term price realization for their output.” “The outcomes indicate no let up in inflationary pressure during the first half of the present fiscal,” he added. Assocham said production of consumer durables, consumer non-durables, intermediate goods and infrastructure is estimated to go up strongly over the next six-month period. On the other hand, services and capital goods sectors have indicated relatively low growth in output, it added. Assocham said the main objective of the survey was to understand the changing business trends and perceptions in the country and raise the concerns of the business sector emphatically with the policy makers.