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.
Home appliances to cost more starting November
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.
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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.