Consumer companies have been hiking prices to combat rising inflation. In Asia, many countries are, thus, seeing inflation play a bigger role in driving sales growth. The risk is, if this trend continues, consumers may cut back on spending, affecting volume growth. India’s position appears to be secure still, as volume growth has outpaced value growth. Recently, some domestic consumer firms have voiced concerns about how continually rising inflation may affect demand for their products. If that plays out, India’s consumer market may also see value growth outpace volume growth, which is not a healthy phenomenon.
Also See | The value-volume tango (PDF)
PDF by Sandeep Bhatnagar/Mint