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4 reasons why November could turn out to be costlier for consumers

November can prove to be costlier for consumers. Policy changes and rising prices of crude oil and certain raw materials are likely to push up consumer prices next month. Prices of ACs, fridge, washing machine, air fare, food and fuel may go up in November.

Home appliances

Prices of refrigerators, air-conditioners and washing machines are set to go up 3-5% starting November, as white goods makers plan to pass on higher input costs. Input cost has gone up by 30-50% since the last price hike, which the industry effected in January. The price of steel has since increased by 40% and that of copper by 50%. A crucial chemical called MDI, which is used to make foams mostly for refrigerators, is facing a global shortage and its price has doubled.

Air fares

Thanks to low crude prices till recently, airlines were able to offer low fares to passengers which had led to over 20% growth in domestic air traffic for several months in a row till this summer. Get ready to shell out up to 15% more for flying. Airlines are looking at 10-15% hike in airfares due to sharp increase in aviation turbine fuel (ATF) prices every month since August. The most recent increase came early this month when oil marketing companies raised prices by 6%. These hikes come at a time when the rupee is weakening against the US dollar.

Eating out

Industry body National Restaurant Association of India (NRAI) has said that eating out will get more expensive if the government goes ahead with the proposal of reducing GST rates from 18% to 12% without input credit claims. The government is considering bringing down the GST rates to 12% from 18%. Under the GST regime implemented on July 1, 2017, air-conditioned restaurants pay 18% GST on food. NRAI stated that under the current 18% tax rate, restaurants get to claim credits on the taxes they pay on various things like processed food, rent, electricity and transportation.

However, if the GST rate is brought down to 12%, then in the absence of input tax credit, they will not able to claim these tax rebates, resulting in an increasing in their operational costs by 7% -10%. In the earlier tax regime, restaurants were allowed an input tax credit on things like food items, cutlery etc, NRAI stated.


Fuel prices are likely to rise further as global benchmark oil price is at a 'new normal' of $60 per barrel. India meets 82% of its oil requirement with imports. Consumers have been steadily paying more for petrol and diesel since August. Till October 3, when growing public anger against high taxes forced the government to cut excise duty on fuels by Rs 2 a litre, petrol price had jumped by Rs 7.8 per litre and diesel by Rs 5.7 to hit an all-time high in Delhi.
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