TMS Ep235: India inflation, CXO pay, dairy stocks, GST on rent

A Reuters poll suggested that India’s retail inflation may have eased to 6.78% in July due to a fall in prices of food and fuel. But it is still beyond the RBI’s comfort level of 6%. And it is also pinching people’s pockets. So can we expect some relief in the days to come? 

But inflation is not much of a worry for the well-heeled, like the CEOs of companies. There is a yawning chasm between their salaries and those of the other employees. Companies are expected to maintain a reasonable CEO-to-worker pay ratio. But are they doing it? A glance at the CEO’s salary is enough to send your heart racing. So, what can be done to address it? 

The base salary of Coca-Cola CEO James Quincey was $1.6 million in 2020, about 14,000% greater than the beverage giant’s median employee salary. Moving on to markets, dairy companies continued to disappoint investors with dismal profits in the recently concluded quarter as high input costs eroded the sector’s margins. Watch our next report to find out the likely trajectory for the sector, and if it is time for investors to sell these stocks

The government has started levying 5% GST on pre-packaged and labelled dairy products from last month. Cash-strapped dairy companies may pass on this hike to consumers soon. Meanwhile, levying of GST on home rent is also worrying people in some quarters. Who all will pay this tax on rent? Let us find out in this episode of the podcast.