ACs, refrigerators, washing machines will get costlier from November
Waiting to buy home appliances in the off-season may not be such a good idea this year. Due to a rise in input costs, the prices of electric durables such as refrigerators, ACs and washing machines will most likely go up by 3-5% from November. However, consumers will feel the hike only in December since retailers will first clear out their unsold Diwali stocks.
Steel prices have risen by 40%, copper prices by 50%
Input costs have shot up by 30-50% since the last price hike in January. Steel prices have increased by 40% and copper prices by 50%. Due to an international shortage, the cost of MDI, an important chemical used in refrigerators for thermal insulation, has also doubled. With the three accounting for about 70% of the total input cost, prices will be impacted by 5-6%.
AC prices expected to be hiked in January 2018
Though retailers plan to absorb some of the price hike, most of it will be passed on to consumers in a phased-out manner. Refrigerator prices will go up first, beginning November. Washing machines will soon follow. The cost of ACs will be revised in January.
Now the good news: Eating out may get cheaper
Meanwhile, eating out at AC restaurants might get more pocket-friendly. The tax rate for small businesses and AC restaurants will be cut down to 1% if the suggestions of a GST ministerial panel are implemented. Currently under the composition scheme, manufacturers and eateries with an annual revenue of up to Rs. 1 crore pay GST at 2% and 5% respectively.