Commodity prices could weaken by second half of 2022: HUL’s Sanjiv Mehta

Hindustan Unilever CMD Sanjiv Mehta said on Tuesday that he believed commodity prices were likely to decline by the second half of 2022, which in turn would lead to a moderation in consumer inflation.

Responding to a question about consumer inflation in India and how long the cycle of rising commodity prices will continue, Mehta, who is also chairman of industry body FICCI, told Business Today TV in a report. exclusive interview: “I don’t think the commodity cycle is based on a high demand rate, it has been driven more by supply than demand … I think if commodity makers or Commodity players are starting to unclog their supply chain, by the second half of 2022, we should start to see a slowdown in commodity prices. “

Speaking of the current consumer inflation scenario, Mehta added that inflation is a reality. “In the industry I run, commodities like palm oil, commodities like toothpaste derivatives and even tea, inflation has been unprecedented.

The newly elected president of the FICCI also said that the price increase will be a reality in many sectors as companies will have no other options due to the high prices of raw materials.

“As every company would seek to tighten the bell, to optimize all profit and loss (P&L) lines, it would have no other choice but to take a price increase,” he said at the meeting. ‘interview.

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