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India's services sector showed robust expansion in October, per the <keyword id="22267674" type="General" weightage="20" keywordseo="HSBC-India-Services-PMI" source="keywords">HSBC India Services PMI</keyword> (Purchasing Managers' Index), which rose to 58.5 last month, up from September's ten-month low of 57.7. October's figures managed to exceed even the long-run PMI average of 54.1, largely on the back of a strong sales pipeline and elevated demand. Employment, or job creation in this sector accelerated to its fastest growth rate in 26 months. Anticipating solid, sustained demand in the near term, firms added new employees at the most rapid pace in over 2 years. October also saw <keyword id="23834175" type="General" weightage="20" keywordseo="input-costs-rise" source="keywords">input costs rise</keyword> at their fastest pace in 3 months, indicating renewed demand and economic activity in the country. The ISM Services PMI, an indicator of the economic health of the US, also exceeded expectations, reaching 56.0 compared to the forecasted 53.8, suggesting strong growth within the services sector. "During October, the Indian services sector experienced strong expansions in output and consumer demand, as well as job creation, which achieved a 26-month high," said Pranjul Bhandari, Chief India Economist at HSBC. The sector saw increased business activity across multiple fronts, with export sales showing significant growth and companies reporting stronger demand from international markets including Africa, Asia, the Americas, the Middle East, and the UK. However, industry experts remain cautiously optimistic about the sector's prospects. Suman Chowdhury, Chief Economist at Acuité Ratings &amp; Research, noted that while the October recovery is promising, several factors warrant careful monitoring. “The recovery in the PMI indices in October 2024 is promising for the second half of the fiscal after the dip in several high-frequency indicators in September 2024. Industrial and service activity has expectedly received a boost from the anticipated spike in consumption demand in Q3 FY25, driven by the festivities and the marriage season," she said. Chowdhury added that it will be crucial to monitor the sustainability of these PMI indices at these elevated levels, given the reported weakness in urban demand in Q2 as flagged by FMCG companies. She also noted that potential increases in wholesale and core retail inflation, combined with higher input costs and wage pressures, could delay expected interest rate cuts. RBI governor Shaktikanta Das also noted that inflation and CPI figures for October might be elevated, pushing ahead any chances of interest rate cuts in the near future. Acuité Ratings &amp; Research maintains its GDP growth forecast at 7.0% for FY25 while acknowledging the multiple downside risks that will require close observation in the coming months.

India's Services Index jumps to 58.5 in October as employment grows the fastest in 26 months

On Tuesday, <keyword id="19907441" type="General" weightage="20" keywordseo="Aditya-Birla-Group" source="keywords" meta.keywordsubtype="org" meta.entityname="Aditya Birla Group" meta.hostid="261" meta.entityid="Aditya Birla Group">Aditya Birla Group</keyword>'s <keyword id="20102108" type="General" weightage="20" keywordseo="metal" source="keywords">metal</keyword> flagship <keyword id="20318152" type="General" weightage="100" keywordseo="Hindalco-Industries" source="keywords" meta.keywordsubtype="org" meta.entityname="Hindalco Industries" meta.hostid="261" meta.entityid="Hindalco Industries">Hindalco Industries</keyword> reported a 25.2% rise in consolidated profit at Rs 3,074 crore for the June quarter, on the back of favourable macros, operational efficiencies and lower input costs. The company had posted a consolidated profit of Rs 2,454 crore in the year-ago period, <keyword id="20129733" type="General" weightage="20" keywordseo="hindalco" source="keywords">Hindalco</keyword> Industries said in a regulatory filing. In a statement, the company said the consolidated PAT in the first quarter of FY'25 was Rs 3,074 crore, compared to Rs 2,454 crore in Q1 FY24, up by 25 % year-on-year (YoY)." Total income during the quarter under review rose to Rs 57,437 crore, over Rs 53,382 crore noted in the year-ago period. The consolidated revenue for the first quarter stood at Rs 57,013 crore, up 8% YoY, on account of better realisations and efficiencies in India operations. "Hindalco reported an <keyword id="19957744" type="General" weightage="20" keywordseo="EBITDA" source="keywords">EBITDA</keyword> of Rs 7,992 crore (vs Rs 6,109 crore in Q1FY24) in Q1 FY25, up 31% YoY, driven by lower input costs and higher volumes," the statement said. "Our strong Q1 results ride on the back of consistent operational excellence and cost optimisation which allowed us to leverage the higher average metal prices. "The <keyword id="20076812" type="General" weightage="20" keywordseo="copper" source="keywords">copper</keyword> business achieved its highest quarterly EBITDA driven by high domestic sales (especially downstream products), healthy by-product credits and better operational efficiencies following a successful planned shutdown," Satish Pai, Managing Director, Hindalco Industries said. The <keyword id="20472150" type="General" weightage="20" keywordseo="aluminium" source="keywords">Aluminium</keyword> India upstream business recorded an 81% growth in EBITDA over the previous year, he said. "Looking ahead, the major capital formation phase of the downstream business is near completion, and from here on, we will explore growth opportunities in the upstream business, given our strong cash position," he explained. The company said its copper business delivered a new record-breaking performance in the first quarter, with EBITDA at an all-time high of Rs 805 crore, up 52% YoY, backed by higher average copper prices and robust operations. Hindalco Industries Ltd is the metal flagship company of the Aditya Birla Group. A 26 billion dollar metals powerhouse, Hindalco is the world's largest aluminium company by revenues, and the world's second largest Copper rods manufacturer (outside China). Hindalco operates across the value chain, from bauxite mining, alumina refining, coal mining, captive power plants and aluminium smelting to downstream rolling, extrusions, and foils. Along with its subsidiary <keyword id="20665479" type="General" weightage="20" keywordseo="novelis" source="keywords">Novelis</keyword>, Hindalco is the global leader in flat-rolled products, and the world's largest recycler of aluminium. Hindalco is the country's largest copper producer, serving more than half the nation's copper requirements. Its copper facility in Gujarat, comprises a copper smelter and refinery complex, downstream facilities, and a captive jetty. Hindalco's global footprint spans 52 manufacturing units across 10 countries.

Hindalco Q1 profit rises 25% Rs 3,074 crore on operational efficiencies, lower input costs

<keyword id="23350090" type="General" weightage="100" keywordseo="Healthcare-in-India" source="keywords">Healthcare in India</keyword> is facing a growing crisis as costs continue to rise sharply, increasing by 14% annually, according to the ACKO India <keyword id="19894985" type="General" weightage="20" keywordseo="health-insurance" source="keywords">Health Insurance</keyword> Index 2024. The report highlights that this double-digit inflation in <keyword id="19909937" type="General" weightage="20" keywordseo="healthcare" source="keywords">healthcare</keyword> is putting immense pressure on individuals and families across the country. "<keyword id="23350091" type="General" weightage="20" keywordseo="healthcare-inflation" source="keywords">Healthcare inflation</keyword> was reported at 14 per cent in India," the report stated, illustrating the persistent increase in healthcare expenses. <h2>Out-of-pocket expenditures</h2>One of the most alarming findings in the report is that 62% of healthcare expenses are paid out of pocket by patients and their families. This has created a significant financial burden, often forcing individuals to turn to loans and borrowings to cover medical costs. The report noted that 23% of hospital charges are financed through borrowings, emphasizing the toll this takes on household financial health. In many cases, these <keyword id="20228812" type="General" weightage="20" keywordseo="out-of-pocket-expenses" source="keywords">out-of-pocket expenses</keyword> are unpredictable and steep, leading to mounting debts for families. As health crises strike unexpectedly, the lack of widespread health insurance coverage is leaving families vulnerable, highlighting the urgent need for better healthcare protection. <h2><keyword id="20699023" type="General" weightage="20" keywordseo="kidney-disease" source="keywords">Kidney disease</keyword> capital: Delhi</h2>Kidney disease has emerged as a growing concern in India, with Delhi being identified as the kidney disease capital of the country. The report states that Delhi NCR had the highest share of health insurance claims related to kidney health, followed closely by Kochi. "Delhi is the capital for kidney disease, followed by Kochi. Delhi NCR had the highest share of claims related to kidney health," the report confirmed, indicating a rising trend in kidney-related issues. Beyond the staggering number of claims, the financial impact of treating kidney diseases has also been brought to light. The average age of patients claiming for kidney and renal problems is 47 years, showing that kidney issues are affecting people at a relatively young age. One of the highest bills for kidney-related treatment in the past year amounted to Rs 24,73,894, showing just how costly these health conditions can be. <h2>Rising <keyword id="19898369" type="General" weightage="20" keywordseo="heart-disease" source="keywords">heart disease</keyword> in major cities</h2>The report also flagged the increasing number of heart disease cases in India's metropolitan cities. Kolkata and Mumbai recorded the highest number of claims related to heart conditions, with hospitalizations for cardiovascular issues like heart attacks rising sharply, particularly among people aged 31 to 50 years. "Kolkata and Mumbai topped the list of metros when it came to disorders of the circulatory system like heart attacks," the report noted, painting a worrying picture of the growing burden of lifestyle diseases in urban India. Poor diets, stress, and lack of exercise are all contributing factors, creating a serious public health challenge for the country. In addition to kidney and heart diseases, the report also highlighted concerns surrounding cancer. The ACKO Index predicts that <keyword id="20418550" type="General" weightage="20" keywordseo="cancer-cases" source="keywords">cancer cases</keyword> are expected to rise by 13% between 2020 and 2025, which, coupled with the already high cost of cancer treatment, adds further strain to the healthcare system. <h2>Expanding health coverage</h2>In response to the growing healthcare challenges, the Indian government has introduced measures aimed at reducing the burden on citizens. On September 11, 2024, the Union Cabinet approved health coverage for all senior citizens aged 70 years and above, under the <keyword id="19913233" type="General" weightage="20" keywordseo="Ayushman-Bharat" source="keywords">Ayushman Bharat</keyword> Pradhan Mantri Jan Arogya Yojana (AB PM-JAY). This scheme will provide health insurance regardless of income level, offering Rs 5 lakh per family per year for secondary and tertiary care hospitalisation. This move is a step forward in protecting senior citizens from catastrophic healthcare expenses, but the need for broader reforms remains critical as the out-of-pocket burden for millions of younger citizens continues to mount. (with inputs from agencies)

Healthcare in India faces massive strain as costs rise by 14% annually; most expenses paid out-of-pocket

<ul class="summary-list"><li>All kinds of startups are rushing into the AI inference market.</li><li>Inference market competition may lower the price of AI, benefiting builders but challenging clouds.</li></ul>Jared Quincy Davis and his AI computing startup Foundry sell <a target="_blank" class="" href="https://www.businessinsider.com/nvidia-competition-sambanova-groq-cerebras-show-faster-inference-speed-2024-9">inference.</a> They don't make chips or build <a target="_blank" class="" href="https://www.businessinsider.com/openai-anthropic-ai-bots-havoc-raise-cloud-costs-websites-2024-9">large language models</a>. Foundry has a unique method of making cloud computing more efficient. Instead of selling its technology to cloud providers, the Foundry team decided to become one and use its tech to operate a more efficient cloud.Once companies looking to leverage and sell an AI product have trained their models and know that they perform, they're looking for ease, speed, and value whenever generating outputs. Inference-as-a-service providers like Foundry, <a target="_blank" class="" href="https://www.businessinsider.com/foundry-ceo-hack-improving-ai-models-gpt-5-2024-8">aim to simplify</a> the process of generating those outputs.Foundry offers training and fine-tuning, too, as many cloud providers do, but these days, it seems like anyone with an AI compute-boosting technology is attempting to monetize by selling inference — or more specifically, tokens, the base unit of data in AI.<a target="_blank" class="" href="https://www.businessinsider.com/cerebras-nvidia-challenger-ai-chip-battle-2024-7">Cerebras</a> sells inference too. The company's core expertise is designing chips for training and inference, but it recently started selling the latter as a service. So does Groq, a chip company formed by two former Googlers, who recognized early that inference was going to get the bigger share of computing. <a target="_blank" class="" href="https://www.businessinsider.com/nvidia-competition-sambanova-groq-cerebras-show-faster-inference-speed-2024-9">SambaNova Systems</a>, another hardware platform, also sells inference as a service.Companies like Lambda, CoreWeave, Together AI, and Crusoe, all close partners of Nvidia, run data centers suited specifically to AI workloads and offer inference services. And then there are the hyperscalers like AWS and Microsoft Azure.With so many companies specializing in inference, suspicion is rising that the cost of inference is about to drop off a cliff."Part of the reason inference is a little commoditizable is customers are kind of paying for tokens at the end of the day," Davis told Business Insider.The current market for inference is kind of like the electricity market, Davis said. There are a ton of niche sources you can access if you actually shop around, but not everyone does. Most people just want to flip the light switch and have it work.But there is a lot of nuance to sift through for those willing. For some customers, <a target="_blank" class="" href="https://www.businessinsider.com/nvidia-competition-sambanova-groq-cerebras-show-faster-inference-speed-2024-9">speed is of the utmost importance</a>. Speed has distinctions too, like time to the first token and tokens per second. There's total job completion time and there are different kinds of inference workloads that lend themselves to different computing setups.Energy efficiency of the underlying hardware and networking is a big determinant of cost. And cost in inference computing is even more important than in training, Groq cofounder Jonathan Ross recently told BI. Training is an overhead cost, while inference is an operating cost.Zoom out from all of the intricacies, and inference is becoming the commodity of the AI age."Some companies just want output and they don't care about infrastructure," Mitesh Agrawal, head of cloud for Lambda, told BI.<h2 id="dff58147-0a83-484f-8489-a31c08d0a473">Commoditizing AI</h2>Lambda is in the early stages of an inference-as-a-service offering, but Agrawal said the company is going about it carefully, focusing on providing holistic computing services, and not just tokens.Inference profit margins can vary widely, Agrawal said. With general compute — where the customer rents fixed capacity — the margins are easier to manage. When you're charging for usage or input and output of a model, the return is less predictable.Organizing multiple users across a finite number of servers takes finesse. Whether or not the cost of operating the hardware is actually covered with room for profit comes down to how well that organization is done, Agrawal explained.So why would neoclouds offer the riskier service?Agrawal said it's about getting potential customers in the door. Inference-as-a-service customers can turn into more traditional compute customers, and as the slate of competitors grows, relationships, and history grow in importance.Lambda's financial models assume that price cuts are coming soon as more players enter the inference space and chips become more efficient.<h2 id="59b576b3-4703-4b08-b315-2c7f48e230fb">A race to the bottom?</h2>How fast the demand for inference is growing is up for debate, but in recent public statements, Nvidia CEO Jensen Huang has said on multiple occasions that new models, like OpenAI's o1, require more compute to generate the same number of responses because they run multiple models to check their own work or "reason." Accuracy, it turns out, requires more compute.Inference loads are poised to grow, but service providers still anticipate a drop in price from the influx of new players. Davis isn't worried though.He recalled Jevon's paradox — an economic principle in which a drop in price or an increase in efficiency leads to more total consumption — like when you widen a highway and traffic gets worse."If I make something 10 times cheaper, people won't spend 10 times less, nor will they even hold their budgets the same. They'll spend more," Davis said. "That makes sense because what are you doing when you make something 10 times cheaper, you're making the ROI better."In other words, "it turns out, when you make inference cheaper, people decide to do a lot more inference," Davis said.The ride ahead could be "bumpy" though, and not all players are likely to survive the moments of mismatch between supply and demand."As my old boss at Intel Andy Grove used to say, 'Let chaos reign, and then reign in the chaos'," said Sriram Viswanathan, founding managing partner at Celesta Capital and investor in SambaNova Systems.He agrees the next few years will be wildly competitive for inference providers, but he believes the winners will be decided on merit."The core innovation can't be in the go-to-market, but in the performance and power of the underlying architecture," Viswanathan said.Many of the companies selling tokens to break into the AI market aspire to more. The chip designers eventually want to sell chips to hyperscalers rather than inference to AI startups. The ultimate version of Foundry's tech is bigger too."If we do our job, right, you know, we will be a core part of how every GPU runs," Davis said. All roads, it seems, run through inference.Hugh Langley contributed reporting.Got a tip or an insight to share? Contact Senior Reporter Emma Cosgrove at <a target="_blank" href="mailto:ecosgrove@businessinsider.com">ecosgrove@businessinsider.com</a> or use the secure messaging app Signal: 443-333-9088

'Let chaos reign': AI inference costs are about to plummet  

<ul><li>Luxury cars’ price tags are about to get fatter as automaker Audi increases the prices of its models for the second time in four months.</li><li>Due to rising input and supply chain costs, Audi will be increasing its prices yet again by 2.4%.</li><li>In April, luxury auto makers Audi and Mercedes-Benz had increased their prices by 3%.</li></ul>Luxury car Audi is about to get a tad more expensive, as the automaker increases its prices for the second time in four months. The German luxury car manufacturer on Tuesday announced a price hike of up to 2.4% across its model range in India, effective September 20. This will see the cost of <a href="https://www.cardekho.com/cars/Audi#:~:text=Audi%20car%20prices%20in%20India,tag%20of%201.29%20%2D%201.57%20Cr.">Audi Q7</a>, for instance, rising to ₹83.96 lakh from ₹82.49 lakh currently. The current price jump is aligned with the festive season, which usually bumps up sales of luxury automobiles. “At Audi India, we are committed to operating a sustainable business model. With rising input and supply chain costs, we are required to take a price hike of up to 2.4% across our model range,” said Balbir Singh Dhillon, head of Audi India. The cost of raw materials required to manufacture cars has <a href="https://economictimes.indiatimes.com/industry/auto/auto-news/vehicles-to-get-costlier-as-input-costs-keep-rising/articleshow/90695839.cms?from=mdr">shot up</a> after the war in Ukraine – aluminium is costlier by 48%, palladium by 38%, rhodium by 35%, platinum by 13%, rubber by 28% and copper by 15% compared to the second half of 2021. In April, Volkswagen group firm Audi and its rival, Mercedes-Benz India, had increased their prices by 3% due to high input and logistics costs. Luxury automakers are still struggling with the increasing input costs in India and are passing on the additional expense to consumers. The luxury automobile industry has also been dealing with the pandemic’s after-effects, which reduced <a href="https://www.mordorintelligence.com/industry-reports/india-luxury-car-market#:~:text=Market%20Overview,the%20forecast%20period%202022%2D2027.">footfalls at</a> the showrooms. Despite the price increase, Audi’s <a href="https://www.businessinsider.in/business/auto/news/audi-gets-back-some-of-its-lost-shine-with-evs-gears-up-for-launch/articleshow/92594129.cms">sales </a>for the first six months of the year grew at a healthy 49% over last year, thanks to new product launches, and demand for its Audi e-tron range, Audi Q5, Audi Q7, Audi A4, Audi A6 and S/RS models. The German auto major also <a href="https://www.businessinsider.in/business/auto/news/audi-gets-back-some-of-its-lost-shine-with-evs-gears-up-for-launch/articleshow/92594129.cms">said</a> that it had retailed 1,765 units in the January – June 2022 period, buoyed by electric vehicles. According to market research firm Mordor Intelligence’s <a href="https://www.mordorintelligence.com/industry-reports/india-luxury-car-market#:~:text=Market%20Overview,the%20forecast%20period%202022%2D2027.">report</a>, the Indian luxury car market was valued at $1.06 billion in 2021 and this is expected to grow to $1.54 billion by 2027, at a CAGR of over 6.4%. In FY21, BMW, Audi, Jaguar Land Rover and Volvo had the highest growth among the luxury car manufacturers, according to Mordor Intelligence.

Rising input and supply chain costs push luxury carmaker Audi to hike prices by 2.4%

<keyword id="20630" type="General" weightage="100" keywordseo="honda" source="Orion">Honda</keyword> Cars India plans to raise prices of its entry-level compact sedan Amaze by up to ₹12,000 in order to offset the impact of an increase in production cost owing to upcoming stricter emission norms from next month. The price increase will vary depending on the different trims of the model. "We will increase Amaze prices by up to ₹12,000 with effect from April 1 to factor in the rise in the production cost due to the upcoming stringent emission norms," Honda Cars India Vice President Marketing &amp; Sales Kunal Behl told PTI. The company would not be altering the prices of its mid-sized sedan City, he added. The Indian automobile industry is currently working to make its products meet the second phase of <keyword id="3084225" type="General" weightage="50" keywordseo="bsvi" source="Orion">BSVI</keyword>. From April 1, vehicles will need to have an onboard self-diagnostic device to monitor real-time driving emission levels. The device will constantly monitor key parts to meet emission standards such as the catalytic converter and oxygen sensors to closely monitor emissions. On March 22, <keyword id="6357252" type="General" weightage="50" keywordseo="hero-motocorp" source="Orion">Hero MotoCorp</keyword> announced that it will increase the prices of its model range by around 2 per cent from next month. Similarly, <keyword id="42747" type="General" weightage="50" keywordseo="tata-motors" source="Orion">Tata Motors</keyword> has announced that it will be increasing the prices of commercial vehicles by up to 5 per cent from April 1, 2023. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/careers/news/logitech-lays-off-300-employees-as-computer-accessories-sales-drop/articleshow/98934417.cms">Logitech lays off 300 employees as computer accessories sales drop</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/tech/news/tips-to-identify-and-avoid-fake-chatgpt-extensions-on-google-chrome/articleshow/98934854.cms">Tips to identify and avoid fake ChatGPT extensions on Google Chrome</a>

Honda to hike Amaze prices up to ₹12,000 from April to offset high input costs

<keyword id="148913" type="General" weightage="20" keywordseo="audi-india" source="Orion">Audi India</keyword> has declared a price hike on certain models. This means that <keyword id="6363321" type="General" weightage="100" keywordseo="audi" source="Orion">Audi</keyword> fans in India have to pay more for their desired luxury car. The company says the price bump is due to the increase in customs duty and input costs. The Audi Q3 and Audi Q3 Sportback models will witness a price increase of up to 1.6 percent, while the Audi Q8 Celebration, Audi RS5, and Audi S5 will experience a price hike of up to 2.4 percent. The company has already increased the price of Q8 Celebration, RS5, and S5 by up to 2.4 percent with effect from April 1. "At Audi India, we strive to give our customers the best, but the rise in customs duty and input costs have compelled us to amend our prices upwards," Audi India Head Balbir Singh Dhillon said in a statement. While the company has tried to absorb the impact at various levels, the current situation necessitates a price increase, he added. An increase in customs duty and input costs means that the car company must pay more to import or purchase the necessary materials, components, and parts required to manufacture the cars. As a result, the production cost of the cars increases, and the car company may have to pass on the additional expenses to customers by raising the prices of their products. This could affect the car company's sales and profitability and the demand for their cars in the market. Also, Audi is one of many car makers to hike prices for its models. Mercedes-Benz India has already increased its vehicle prices ranging from ₹2 lakh to ₹12 lakh across different models from April 1, to offset rising input costs, especially the adverse impact of foreign exchange movements. With inputs from PTI. SEE ALSO: <a href="https://www.businessinsider.in/business/auto/news/tata-motors-overtakes-hyundai-as-indias-second-largest-car-maker-in-march/slidelist/99300135.cms" style="">Tata Motors overtakes Hyundai as India's second largest car maker in March</a> <a href="https://www.businessinsider.in/business/auto/news/honda-ends-production-of-jazz-wr-v-and-city-4th-generation-cars/articleshow/99260795.cms" style="">Honda struggles in the Indian car market with discontinuation of nine models in six years</a> <a href="https://www.businessinsider.in/business/auto/news/passenger-vehicle-sales-steady-commercial-vehicles-drive-growth-in-march/articleshow/99206199.cms" style="">Passenger vehicle sales steady, commercial vehicles drive growth in March</a>

Audi India raises prices of select models up to 2.4% due to custom duty and input cost hike

<keyword id="6376312" type="General" weightage="100" keywordseo="mother-dairy" source="Orion">Mother Dairy</keyword> has raised the price of its full cream milk offerings from Rs 63 per litre to Rs 64 per litre in <keyword id="66" type="General" weightage="50" keywordseo="delhi" source="Orion">Delhi</keyword> and National Capital Region. The prices of full cream milk sold in packs of 500 ml have been kept unchanged. The revised price point, which was announced on Sunday, came into effect today itself. While the price of full cream milk has been increased by Rs 1 per litre, tokenized milk became costlier by Rs 2 per litre to Rs 50. This is the fourth upward revision in prices of milk, an essential food item, in 2022. The earlier revisions were done in March, August, and October this year. <keyword id="15573975" type="General" weightage="50" keywordseo="surya-parkash-joshi" source="Orion">Surya Parkash Joshi</keyword>, a customer who came to purchase milk from Mother Dairy Shop Number 109 at Munirka in New Delhi, told <keyword id="21936" type="General" weightage="50" keywordseo="ani" source="Orion">ANI</keyword>, "Milk price has risen four times this year but unfortunately our salary gets revised rise only once in a year. It affects our monthly expenditures." Swati, another customer told ANI: "Milk is necessary, everyone uses it on a regular basis. This is the fourth time milk prices have been hiked in a year, in such circumstances poor people would not be able to afford it. Milk is now within the reach of the rich only." Mother Dairy is the largest milk supplier in Delhi <keyword id="53426" type="General" weightage="50" keywordseo="ncr" source="Orion">NCR</keyword>. It reportedly sells more than 30 lakh litres of milk every day through packets and vending machines. Mother Dairy has nine processing plants. The company has hundreds of milk booths as well as successful retail outlets in Delhi-NCR. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/auto/news/alto-k10-cng-launched-in-india-with-33-85-km-mileage-price-specs-and-everything-you-need-to-know/slidelist/95653357.cms">Alto K10 CNG launched in India with 33.85 km mileage – know price, specs and more</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/companies-discussing-labour-shortage-up-by-28-in-2022-report/articleshow/95654525.cms">Companies discussing labour shortage up by 28% in 2022: Report</a>

Faced with high input costs, Mother Dairy raises milk price for four times in 2022

<ul class="summary-list"><li>The US <keyword id="13181865" type="UNKNOWN" weightage="60" keywordseo="producer-price-index" source="Orion">Producer Price Index</keyword> surged 1% in January, doubling the median economist estimate.</li><li>The measure tracks a collection of input costs and is a popular forward indicator for broad <keyword id="11894140" type="UNKNOWN" weightage="60" keywordseo="inflation" source="Orion">inflation</keyword>.</li></ul>Businesses' input prices leaped more than expected in January, signaling inflation will stay at historic highs well into 2022.The Producer Price Index — a popular measure of business costs — rose 1% last month, the <a href="https://www.bls.gov/news.release/ppi.nr0.htm">Bureau of Labor Statistics</a> announced Tuesday. That marked a significant acceleration from December's 0.2% jump and handily exceeded the median forecast of a 0.5% gain from economists surveyed by Bloomberg. The measure also rose 9.7% year-over-year, a larger increase than the 9.1% estimate.Core <keyword id="13181864" type="UNKNOWN" weightage="60" keywordseo="ppi" source="Orion">PPI</keyword>, which strips out volatile food and energy costs, rose 0.8% through January. That overshot the estimate for a 0.5% increase and picked up from the 0.5% gain seen in December.PPI is among the most closely watched forward indicators for broad inflation. Rising input costs tend to fuel price hikes as businesses struggle to protect their margins. The higher-than-expected PPI print suggests pandemic-era inflation could climb even higher as firms pass soaring costs down to shoppers. Still, some experts saw the report simply delaying peak inflation, and still leaving room for a cooldown in 2022."This is a disappointing report, but we remain of the view that core inflation is close to peaking and will be much lower by the end of this year as supply pressures ease and some of the huge increase in margins in some sectors is reversed by a return to more normal market conditions," Ian Shepherdson, chief economist at Pantheon Macroeconomics, said.Prices for final demand goods, or those that are sold for personal consumption or investment, rose 1.3% in January, while final demand service prices edged 0.7% higher. Within goods, the government's index for vehicles and equipment leaped 0.7% while iron and steel scrap prices tanked 10.7%.Outpatient care powered much of the jump in service prices, with the sector's costs climbing 1.6% through the month. The uptick lines up with the peak of the Omicron variant's spread. The US added a record 1.43 million new infections on January 10, and while daily case counts have since declined, hospitalizations didn't peak until 10 days later.The PPI report joins other data showing inflation running hotter than anticipated through the start of the new year. Prices for common goods and services <a href="https://www.businessinsider.com/inflation-cpi-january-price-growth-report-omicron-wave-supply-chains-2022-2">soared 7.5% year-over-year in January</a>, according to Consumer Price Index data published Thursday. That was up from the 7.1% pace seen the month prior and marked the fastest one-year inflation since February 1982. With prices for businesses and consumers climbing in lockstep, it's unlikely inflation is cooling anytime soon.The US retail sales report slated for Wednesday release will give the next hint as to how <keyword id="12094325" type="UNKNOWN" weightage="60" keywordseo="price-growth" source="Orion">price growth</keyword> trends. The data are a popular proxy for overall demand, and a larger-than-expected jump would add to signs that inflation will linger at multi-decade highs. Sales <a href="https://www.businessinsider.com/retail-sales-december-inflation-consumer-spending-holiday-season-economic-recovery-2022-1">cratered 1.9% in December</a> as the Omicron wave cut into spending and stimulus boosts from earlier in 2021 dried up. Yet economists expect sales to rebound 2% through January.After the inflation crisis <a href="https://www.businessinsider.com/inflation-starting-cooldown-supply-recovery-demand-fading-price-growth-2022-1">seemed to improve in December</a>, January data shows the problem worsening all over again. Prices continued to rally for businesses and shoppers alike, and the spending that fueled the surge is showing no signs of slowing.

Prices for business owners are skyrocketing and it hints that inflation isn't slowing down any time soon

New Delhi, Vehicle price hikes coupled with <keyword id="10796736" type="UNKNOWN" weightage="20" keywordseo="cost-rationalisation-measures">cost rationalisation measures</keyword> taken by OEMs will limit the impact of rising input cost but these might not be adequate enough to sustain margins at the 3QFY21 levels, said India Ratings and Research. Accordingly, the Q4FY21-Q1FY22 standalone EBITDA margins of OEMs could be 100-200 basis points lower than Q3FY21's margins, on account of the recent spike in <keyword id="148676" type="PERSON" weightage="20" keywordseo="input-prices">input prices</keyword>. "The vehicle price hikes coupled with the cost rationalisation measures taken by OEMs to counter the sharp rise in the prices of commodities might not be adequate to sustain margins at the 3QFY21 levels," "While operating leverage is likely to remain favourable due to the demand rebound witnessed in most of the industry sub-segments, 4Q being a seasonally lower quarter, operating leverage could remain lower on a quarterly basis." Besides, the shortage of components such as semi-conductors and other electronic components could impact the overall vehicle production and hence limit the potential demand upside. Overall, for FY21, the report said Ind-Ra does not expect significant deviation in the industry EBITDA margins from its earlier expectations. "Ind-Ra believes that although the increasing input prices would impinge on the near-term profitability of auto OEMs, they are likely to benefit from these corrective measures including cost rationalisation over the medium term, as the input prices normalise." At present, cost of raw materials account for 65-70 per cent of the total revenues, depending on industry segments. "The proportion of metal components is over 95 per cent in commercial vehicles (CVs) and tractors (by weight), while it is 65-70 per cent in passenger vehicles (PVs) and two-wheelers (2Ws)." "In terms of value, metals cost directly account for 8-16 per cent of revenues on parts such as body or chassis, powertrain or engine components, wheel rims." Additionally, metals are used in certain other components, child parts, sub-assemblies which is difficult to quantify. "The prices of these commodities have been on an increasing trend." In YTDFY21, the average cost of steel increased 12.6 per cent compared to the FY20 average, while the prices of aluminum and copper increased 8 per cent and 5 per cent, respectively. "In 3QFY21 alone, the prices for steel, aluminum and copper had increased by 29 per cent, 19 per cent and 9 per cent yoy, respectively. In January 2021, the prices of steel were hovering at historically high levels of INR 73,843 per tonne." SEE ALSO: <a href="https://www.businessinsider.in/entertainment/news/pewdiepies-lyrics-targeting-cocomelon-and-jk-rowling-that-may-have-gotten-youtube-angry-enough-to-pull-the-video-down/articleshow/81102941.cms">PewDiePie's lyrics targeting CocoMelon and JK Rowling may have gotten YouTube angry enough to pull the video down</a> <a href="https://www.businessinsider.in/business/ecommerce/news/flipkart-gets-leaner-with-a-300-million-jabong-write-off-as-ceo-kalyan-krishnamurthy-lists-out-the-priorities-for-2021/articleshow/81105083.cms">Flipkart gets leaner with a $300 million Jabong write-off as CEO Kalyan Krishnamurthy lists out the priorities for 2021</a> <a href="https://www.businessinsider.in/stock-market/news/happiest-minds-is-leveraging-its-partnerships-with-big-players-like-google-microsoft-aws-salesforce/articleshow/81105035.cms">Happiest Minds is a smaller company that does the same thing as MindTree and L&amp;T Infotech — but clearly it is doing it a lot better</a> <a href="https://www.businessinsider.in/tech/news/india-may-require-twitter-facebook-and-others-to-remove-unlawful-content-within-36-hours/articleshow/81104740.cms">India may require Twitter, Facebook and others to remove unlawful content within 36 hours</a>

Vehicle price hikes to limit impact of rising input cost on OEMs, says India Ratings and Research

Car market leader <keyword id="6365618" type="DOMAIN" weightage="20" keywordseo="maruti-suzuki-india">Maruti Suzuki India</keyword> on Wednesday said it will increase prices of its vehicles from January to offset the <keyword id="1721585" type="PERSON" weightage="20" keywordseo="adverse-impact">adverse impact</keyword> of rising <keyword id="182533" type="PERSON" weightage="20" keywordseo="input-costs">input costs</keyword>. Over the past year, cost of the company's vehicles have been impacted adversely due to increase in various input costs, <keyword id="44883" type="DOMAIN" weightage="20" keywordseo="Maruti-Suzuki">Maruti Suzuki</keyword> India said in a regulatory filing. "Hence, it has become imperative for the company to pass on some impact of the above additional cost to customers through a price increase in January 2021. This price increase shall vary for different models," it added. At present Maruti Suzuki sells a range of vehicles from entry-level small car Alto with price starting at Rs 2.95 lakh to multi-purpose vehicle XL6 priced up to Rs 11.52 lakh (ex-showroom Delhi). The company's announcement comes at a time when the carmaker is recovering from the lockdown induced disruptions. In November, it had posted a 2.4 per cent decline in total domestic passenger vehicle sales at 1,35,775 units as against 1,39,133 in the same month last year. However, its overall sales, including exports, were at 1,53,223 units as against 1,50,630 in November 2019, a growth of 1.7 per cent. SEE ALSO: <a href="https://www.businessinsider.in/science/health/news/canada-has-enough-covid-19-vaccine-doses-to-cover-each-citizen-five-times-over-while-the-fate-of-67-poor-countries-remains-undecided/articleshow/79645493.cms" data-type="tilCustomLink">Canada has enough COVID-19 vaccine doses to cover each citizen five times over while the fate of 67 poor countries remains undecided</a>

Maruti Suzuki India to hike prices from January to cover rising input costs

<ul class="summary-list"><li>The 30-year fixed mortgage rate spiked to 6.87% in the last week, the highest level in two months. </li><li>Elevated borrowing costs for prospective buyers sent mortgage applications lower. </li></ul>Mortgage rates surged to a two-month high in the last week, sending mortgage applications tumbling. The 30-year fixed mortgage rate jumped to 6.87% in the week ending February 9th, marking the highest level since early December 2023's average of 6.43%, according to Mortgage Bankers Association data released on Wednesday.Meanwhile, elevated borrowing costs weighed on mortgage applications to push total volume down 2.3% from the previous week, with the share of refinancing activity dropping to 34.2% from the previous week's 35.4%."Purchase applications remained subdued as elevated rates continue to add to affordability challenges along with still-low existing housing inventory," Joel Kan, MBA's Vice President and Deputy Chief Economist said. The uptick in mortgage rates reversed the declines seen over the past few months. Rates <a href="https://www.businessinsider.com/housing-market-buying-a-home-mortgage-rates-home-prices-outlook-2024-1">falling from their highs of 8% last year to around 6.7%</a> gave American homebuyers a $40,000 boost to their purchasing power. The latest data on inflation also doesn't bode well for lower mortgage rates. While the fed funds rate isn't the only input for mortgage rates, longer timelines for rate cuts by the central bank are likely to keep home loan costs elevated. Inflation in January clocked in at a <a href="https://www.businessinsider.com/inflation-cpi-consumer-price-index-january-housing-food-energy-prices-2024-2#:~:text=Core%20CPI%2C%20excluding%20volatile%20food,above%20the%20forecast%20of%203.7%25.">higher-than-expected 3.1%</a>, causing stocks to tumble and bond yields to spike on Tuesday. Shelter costs stood out as a big driver of the hot inflation print. "Overall, this still falls in the category of speed bumps on a broader trajectory toward the Fed's inflation goals and intention to cut rates this year," Redfin said in a report following the inflation print.

30-year mortgage rate rises to the highest level in 2 months

<ul class="summary-list"><li>Red Sea attacks have caused shipping costs to rise over 150%, Fitch Ratings said.</li><li>This could lead to a jump in core inflation, the agency forecast.</li></ul>Disruptions to shipping lanes in the Middle East will mean that the final mile of inflation reduction won't be smooth sailing, <a href="https://www.fitchratings.com/research/sovereigns/jump-in-shipping-costs-intensifies-last-mile-inflation-challenges-26-02-2024" target="_blank" rel="noopener">Fitch Ratings reported</a> on Monday.Since late 2023, cargo ships passing through the Red Sea have faced attacks from <a href="https://www.businessinsider.com/houthi-attacks-ships-give-rebels-iran-intelligence-war-experts-2024-2">Houthi rebels</a>, a Yemeni group carrying out these assaults in protest over the Israel's war against Hamas in Gaza. This has resulted in a surge of over 150% in shipping costs so far this year, which could add 0.5 percentage points to core inflation, the rating agency forecast."These increases are likely to be reflected in rising import prices in the coming months, and longer shipping times will reduce supplies of intermediate inputs and consumer goods. The outlook for shipping costs is uncertain, but a plausible scenario is that they will remain high for several quarters," Fitch wrote.As cargo lines reroute their vessels, the weight of higher costs won't be immediately apparent in inflation metrics. The effect takes eight to 10 months to appear in the consumer price index, though import prices reflect these costs within two months."This points to a 3.5pp increase in US import price inflation by end-2024. We then constructed a model for US core goods inflation based on import prices and the NY Fed Global Supply Chain Pressure Index (GSCPI) and assumed the latter rises modestly," Fitch rote. "This indicates a rise in US core goods inflation of about 1.5pp, which would equate approximately to a 0.4pp addition to US core CPI inflation."Economists have long warned that the final stretch of reducing inflation to a central bank's target rate could prove the most challenging. In the US, a surprising to the upside in January's inflation report has dampened hopes of imminent interest rate cuts. Yet others worry that the <a href="https://www.businessinsider.com/recession-odds-federal-reserve-interest-rate-cuts-inflation-el-erian-2024-2">Federal Reserve's reluctance</a> to loosening monetary policy could eventually cause economic fallout, and trade disruptions don't make the central bank's decision any easier. But while rising shipping costs add another layer of difficulty, this won't be a repeat of 2021, Fitch outlined. That year, pandemic pressures wrought havoc on supply chains, while demand for goods and manufacturing inputs surged. Cited estimates from the International Monetary Fund suggest inflation rose 1.5 to 2 percentage points from freight costs alone that year. This time, however, goods consumption is growing moderately, while broader supply chains are not nearly as constrained, Fitch said.

You Searched For "input costs rise" and got 13 results

India's Services Index jumps to 58.5 in October as employment grows the fastest in 26 months

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Hindalco Q1 profit rises 25% Rs 3,074 crore on operational efficiencies, lower input costs

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Rising input and supply chain costs push luxury carmaker Audi to hike prices by 2.4%

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Honda to hike Amaze prices up to ₹12,000 from April to offset high input costs

PTI

Audi India raises prices of select models up to 2.4% due to custom duty and input cost hike

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Faced with high input costs, Mother Dairy raises milk price for four times in 2022

ANI

Prices for business owners are skyrocketing and it hints that inflation isn't slowing down any time soon

Ben Winck

Vehicle price hikes to limit impact of rising input cost on OEMs, says India Ratings and Research

IANS

Maruti Suzuki India to hike prices from January to cover rising input costs

PTI

30-year mortgage rate rises to the highest level in 2 months

Yuheng Zhan

Red Sea turmoil has sent shipping costs surging 150%, which will push inflation higher, Fitch says

Filip De Mott

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