Fuel Price hike affecting inflation, stock market.....and consumers.
With an increase in fuel prices ,petrol by Rs 5 per litre, Rs 3 on diesel and Rs 50 on LPG cylinder, together with customs and excise duty cuts by the central government in an attempt to save the oil marketing companies from bankruptcy, what will be further impact on inflation.
Definately inflation will take a upward move. As per Economists inflation will flare up to 13 year high of 9.2 percent due to the price increase.
A high inflation rate affects the consumer at the retail level and the corporate profits too. The cost of living rises and the consumer has to pay more for the same goods and services.At the corporate level, the higher cost directly impacts the bottom line.
Their inability to pass on the price increases to the consumer further squeezes their margins. This in turn directly affects the stock markets, which prices future earnings of all companies listed with it.
Definately inflation will take a upward move. As per Economists inflation will flare up to 13 year high of 9.2 percent due to the price increase.
A high inflation rate affects the consumer at the retail level and the corporate profits too. The cost of living rises and the consumer has to pay more for the same goods and services.At the corporate level, the higher cost directly impacts the bottom line.
Their inability to pass on the price increases to the consumer further squeezes their margins. This in turn directly affects the stock markets, which prices future earnings of all companies listed with it.
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