19 January 2024, Mumbai
Offering Relief in Overall Inflation Storm
While overall inflation continues to rage at 5.69%, the clothing and footwear sector in India managed to stay relatively calm, with a slight uptick from 3.55% in November to 3.61% in December.
This stability marks a significant improvement compared to last year's December rate of 183, a trend also mirrored in the sub-sectors: clothing prices at 3.75% and footwear at 3.05%.
A spot of bother
Experts attribute this welcome respite to factors like lower raw material costs and intense competition in the market.
However, with the Reserve Bank of India's target range for inflation set at 2-4%, the overall figure remains a cause for concern, potentially limiting the RBI's policy options.
Cautionary outlook
Despite the clothing sector's encouraging trend, a sense of cautious optimism reigns.
Global headwinds like surging oil prices and geopolitical tensions pose long-term inflation risks, meaning supply chain disruptions could still throw a wrench in the works.
We can't take our eyes off the ball.
The RBI is wisely keeping a watchful eye on the situation, ready to adjust its policies as needed to navigate this delicate economic landscape.
Gist
- Clothing and footwear resist inflation.
- Stability: 3.61% in December.
- Lower costs and market competition.
- RBI's concern: 2-4% target.
- Cautious optimism amid global risks.
- RBI vigilance in economic delicacy.
