Bigger firms pass on surging input costs to consumers, smaller ones stuck

Smaller manufacturers are resorting to cuts in the wage bill to keep afloat, as the demand situation in the economy remains low

While companies in India have been facing burgeoning input costs, only the bigger ones seem to be able to pass them on to consumers. This is so because the low demand situation is preventing medium and smaller ones from doing so, and is borne out by wholesale price index (WPI)-based data. 

WPI inflation eased to a three-month low in July, but was still at an elevated level of 11.16 per cent.

However, inflation in manufactured items rose to 11.20 per cent from 10.88 per cent in the previous month. It was in double digits for three consecutive months and stood