Key Points
Return to office and a possible 'lipstick effect' might be contributing to higher inflation in beauty products and services...
Prices of beauty products and services grew at 6.3% on average in the April-June period compared to 6.5% in FY23, according to official data...
Average inflation dipped to 4.6% in the first quarter of FY24 compared with 6.7% in FY23, but inflation in beauty products and segments has remained high...
The rising prices of beauty products and services could also be attributed to the "ripple effect of high inflation", said Paras Jasrai, senior analyst, India Ratings and Research..
Madan Sabnavis, chief economist, Bank of Baroda, believes that besides the lipstick effect, return to office and producers passing on costs to consumers may also be a reason for rising prices in this segment...
