Manufacturers flag price cuts as input costs ease

Manufacturers are beginning to pass on lower input costs to customers, in a tentative sign that the worst of the price pressure has passed for the sector.

Firms that had raised prices repeatedly to protect margins now say they have room to compete on price again, particularly in categories where imported inputs dominate the cost base.

Demand still fragile

The relief is not uniform. Volumes remain uneven across categories, and several producers are choosing to rebuild margins rather than cut prices, wary of a fragile consumer recovery.

Industry groups caution that energy costs and logistics remain the swing factors, and that any renewed currency pressure would quickly reverse the improvement.