POLITICS AND COMMODITIES
The FMCG market is also sensitive to geopolitical events which can hold back
growth such as the current situation in Russia and Ukraine where sanctions and
political tensions are having an impact on the market. A further area of exposure is raw material and commodity prices, which drive the industry’s cost base. Across many emerging markets, devaluing currencies have imported inflation into local raw material production.
Elsewhere the oil price has been trending down, compounding price deflation in Europe.