Inflationary pressure on the FMCG segment is “cooling off a little” and volume growth from the rural markets is going to be better, ITC chairman and managing director Sanjiv Puri said on Thursday.

At present there is a “phenomenal” amount of inflation, hence FMCG volume growth in rural areas is “muted” and the bulk of the growth is inflation-led, he said at an event organised by the CII.

On consumption trends, Puri said: “In the FMCG segments, we are seeing both the trends of permutation and at the same time there is a lot of value-seeking behaviour and stress at the lower price points.”

He said India is “much better” than the rest of the world, witnessing high inflation.

“As far as consumption is concerned, the main stress point is inflation induced because prices of lots of products have gone up at a percentage probably in the prior period that would have taken five years to go up,” Puri said.

Puri said rural demand is going to get better because realisations have been better and costs are up and as a net, it is “better off”.

“There would be certain regions that are going to be more impacted and it is more to do with the distribution of rainfalls and untimely rains. Certain areas would be under stress,” he said.