Why Consumer Giants Are Avoiding Price Hikes Despite Rising Inflation

India's consumer giants are absorbing higher costs from surging inflation instead of passing them on to financially stretched shoppers. Inflation accelerated to a near two-year high of <b>5.54 percent</b> in September, driven largely by food costs jumping to <b>7.74 percent</b>. Firms such as Westlife Foodworld, Devyani International, and Sapphire Foods are cautious about raising prices due to an uneven demand outlook. Executives warn that further price increases could chip away at sales growth, squeezing corporate margins as household purchasing power weakens. Consumer-goods makers are focusing on operational efficiencies and offering products at entry-level price points to maintain store traffic. While the festival season may provide temporary relief, analysts expect discretionary spending to remain under pressure in coming quarters.