Firms starting to pass on rising costs amid pick-up in demand: RBI study

Report says the gap between output and input prices widened during the pandemic, particularly after the first Covid-19 wave

With a pick-up in demand, companies in the manufacturing and services sectors have begun to pad up their sale prices with a part of rising costs, shows an RBI study. The report adds that there is need to be watchful of about the impact of input price pressure amid continued global uncertainties.

Higher fuel, raw material, and transportation costs and other supply chain-related constraints have driven input prices up. The rise has been broad-based with the repeated waves of the pandemic, and has been aggravated further by the war in Europe, according to the study published in Reserve Bank of