Gradual price rise forecast

Raw material prices, especially wheat, palm oil, corn, soybean and brent crude oil, spiked during the February-to-March 2022 period amid concerns over supply disruptions owing to the ongoing Russia-Ukraine conflict since Feb 24. Based on Bloomberg data, wheat prices increased the most among key raw materials with 56% gains year-to-date as at March 22. This is followed by palm oil, corn and soybean, which recorded price increases of 37%, 35% and 28% over the same periods, respectively.

Petaling Jaya: Consumer staples companies are expected to face increased margin pressures, driven by the surge in commodity prices and worsened by the Russia-Ukraine war.

To help mitigate some of the impact, these companies are expected to raise selling prices and pass on some of the costs to consumers.