While prices of raw materials and fuel and power used by the industry had gone up in the second quarter, prices of industrial goods have remained constant, raising fears that the corporate sector's profits would be reduced if this trend continued in the second half of the fiscal year, Assocham President, L Lakshman said in a statement yesterday.

Prices of raw materials had soared up to 11 % during April-August as compared to 1.4 % increase in the same period last year while prices of fuel and power increased by 8.8 per cent.

In contrast, the prices of manufactured goods have gone up by only 4.4 per cent from the 2.7 per cent increase in the corresponding period last year, Lakshman said.

Pointing out that the sharp increase in consumer price index from 1.1 % to 5% had pushed upwage costs at a time when industry was faced with demand constraints in both domestic and international markets, he said the prospects of industry was being further eroded by costlier industrial inputs.