Iran tensions push up Indian household costs:Cooking oil up 7%, soap, biscuit packets shrink, appliances costlier by up to 15%

Rising tensions in West Asia due to the Iran war are driving up everyday expenses for Indian households. From kitchen essentials to clothing and home appliances, prices are rising or expected to increase further. Higher crude oil prices are putting pressure across sectors. According to EY India, the impact could persist for up to two years. Edible oil prices have already risen by more than 7%, with India importing 57% of its requirement, including palm, soybean, and sunflower oil. At the same time, rising costs of packaging, transport, and raw materials are forcing FMCG companies to either increase prices or reduce pack sizes—a phenomenon known as shrinkflation. Products like soap, toothpaste, and biscuits are already being affected. Paint, textile, and personal care companies are also preparing for price hikes. FMCG supply disruptions Breakdown in talks between Iran and the US has tightened crude supply, pushing prices above $104 per barrel. This has led to shortages of surfactants and petrochemical derivatives, disrupting the supply of products like shampoo and soap. To manage costs, companies are reducing pack sizes instead of sharply raising prices. Consumer durables already costlier Manufacturing costs of appliances have risen by 10–15%, with 70% passed on to consumers. Prices of washing machines, refrigerators, fans, and LED products have increased. With rising temperatures, demand for air conditioners is expected to surge, benefiting companies like Voltas and Blue Star. Textile and paint prices may rise further Plastic production costs have surged by around 50% due to higher crude prices. In textiles, polyester, nylon, and color chemicals are now 20–25% more expensive. Since synthetic fiber makes up 60% of India’s textile production, prices of textiles and paints are expected to rise by 2–5% in FY 2026–27.