Inflation Hits Consumers as Prices Surge by Up to 25%

As the new financial year begins, consumers are facing significant price increases on essential items, with hikes of up to 25% expected for products like bread, biscuits, and footwear. The surge in prices is attributed to rising raw material costs due to geopolitical tensions in West Asia. Industry representatives warn that these increases are necessary to maintain profitability amid escalating costs. The middle class and low-income groups are likely to feel the most impact, as these items are staples in daily life. Experts suggest that if tensions persist, further price hikes may follow, prompting calls for government intervention. This situation raises concerns about the financial strain on households and the overall economic landscape.

By Narendra Chaudhary Apr 1, 2026, 13:38 IST

Price Hikes Begin with New Financial Year

New Delhi/Indore, April 1, 2026 — As the new financial year commences, consumers are facing another blow from rising inflation. Starting today, the prices of essential items such as bread, biscuits, footwear, and detergents are expected to increase by 20 to 25 percent.

According to the Madhya Pradesh Association of Industries and other industry groups, escalating raw material costs due to ongoing tensions in West Asia (Iran-U.S. conflict) have led to significant price hikes. The costs of polymers, packaging materials, oil, and other inputs have surged, prompting many companies to implement new pricing structures.

Expected Price Increases (Examples)

Bread: A packet that previously cost ₹30 will now be priced at ₹35 (an increase of ₹3 to ₹6). Smaller packets may see a rise of ₹3-4, while larger packets could increase by ₹5-6.

Biscuits: A ₹5 biscuit will now cost ₹6 (an increase of ₹1-₹2 per packet).

Footwear: A pair of slippers or sandals priced at ₹100 will now be available for ₹120, with some brands experiencing increases of 20-25%.

Detergent: A 1 kg packet may see a price hike of ₹15 to ₹20.

Other plastic-based products, soaps, and packaged food items will also be affected.

Reasons Behind the Price Surge

The primary cause of these increases is the ongoing tensions in the Hormuz Strait, which have disrupted the supply of oil and polymers. In the past month alone, polymer prices have risen by up to 50%, making materials used in footwear production more expensive.

In the bread and biscuit sectors, rising costs of packaging, transportation, and other inputs have compelled companies to raise prices to maintain profitability. Industry representatives argue that this increase is necessary to prevent many small businesses from going under.

Impact on Consumers

Increased Burden on Household Budgets: Bread and biscuits are essential for children's lunches and snacks, while footwear is a daily necessity for school, work, and home.

The Middle Class and Low-Income Groups will be the most affected.

In some states, retailers have already begun displaying new price tags.

Industry Perspective

Industry organizations in Madhya Pradesh and other states have noted that raw material prices have already risen by 20% over the past year. The Hormuz crisis has exacerbated the situation. Companies claim that without relief from GST and other taxes, raising prices is their only option.

Expert Opinions

Economic analysts warn that if tensions in West Asia do not de-escalate soon, prices for these goods may continue to rise. However, some brands have indicated they will initially implement limited increases and adjust later based on market conditions.

While the government has yet to issue an official statement, consumer organizations are expressing concern over the price hikes and are urging the government to consider subsidies on raw materials or reduce import duties.

Advice: Consumers may want to stock up, but not excessively, as further increases are likely. Local brands or bulk purchases may offer some relief.

This inflationary shock, combined with the Iran conflict, rising commercial LPG prices, and other global factors, is intensifying challenges for the average consumer. It remains to be seen how much companies will raise prices and whether the government will introduce any relief packages.