The Authority for Advance Ruling (AAR) under the GST in Kerala held that merchant trade transactions, in which traded commodities never enter the country’s tax jurisdiction, are not liable to the GST as goods are never imported to India. Merchant trade transaction, gst goods and services tax, kerala Goods are liable to integrated GST (IGST) when they are imported to India and the IGST is payable at the time of import of goods into India, the authority said in its ruling. The Authority for Advance Ruling (AAR) under the GST in Kerala held that merchant trade transactions, in which traded commodities never enter the country’s tax jurisdiction, are not liable to the GST as goods are never imported to India. In merchant trade transactions, a supplier is India procures goods from an overseas supplier and supplies directly to its overseas customer. In such transactions, goods do not come to the country. Goods are liable to integrated GST (IGST) when they are imported to India and the IGST is payable at the time of import of goods into India, the authority said in its ruling. “The applicant is neither liable to GST on the sale of goods procured from China and directly supplied to the US, nor on sale of goods stored in the warehouse in the Netherlands, after being procured from China, to customers, in and around the Netherlands, as the goods are not imported into India at any point,” the order said. According to the GST Act, an advance ruling pronounced by AAR is binding only on applicant who has sought the advance ruling and on the officer concerned or the jurisdictional officer in respect of the applicant. This means that an advance ruling is not applicable to similarly placed other taxable persons in the state. It is only limited to the person who has applied for an advance ruling. “While earlier, such transactions were not subject to VAT or service tax, there was an ambiguity under GST laws. Therefore, this AAR provides relief to industry, particularly in commodity trading where such transactions are quite common,” Pratik Jain, leader – indirect tax at PwC, said. Jain said while it has been held that the GST is not required to be paid on such transactions, another important question which has not been asked in the application filed for this ruling is as to whether there is requirement for reversal of input credit of taxes paid on expenses attributable to such non-taxable income.
Source: Financial Express
The more than 60% rise in crude oil prices from its recent lows in June has prompted investors to offload stocks of oil marketing companies. Shares of state-owned oil marketing companies (OMCs) got battered on Wednesday after media reports suggested that they would be asked to absorb a part of the increase in costs due to the surge in global oil prices. While HPCL plummeted as much as 7.6% to `337.15, in its biggest single-day fall since November, 2015, BPCL tumbled 7.4% to Rs 417.5, its highest single day loss since August 2015. Shares of IOCL slid 6.4% to close the session at `167.80 on BSE. The oil prices gained 1.2% to $71.86 per barrel at IST 17:11 hours, its highest level since December 2014. It rose 3.5% on Tuesday and has now recorded gains in each of the last three sessions. The more than 60% rise in crude oil prices from its recent lows in June has prompted investors to offload stocks of oil marketing companies. The three state-owned retailers have seen a combined market capitalisation loss of `45,090 crore since June. With Wednesday’s fall, HPCL and BPCL have lost more than 19% of their value since the beginning of 2018, while IOCL is down 13.6% during the same period. The market benchmark Sensex, in contrast, has lost a mere 0.34% in value since the start of the year. Oil marketing companies had `500 crore worth of under-recoveries in the year ended March 31, caused by selling petrol and diesel at lower than market prices, a Bloomberg report said.OMC stocks have had a dream run in the past four years, with HPCL beating the Sensex returns in every year. Shares of BPCL and IOCL too outperformed the Sensex in three of the four years (barring 2017). In fact, when the Sensex yielded a negative return of 5.03% in 2015, HPCL rose 52.7%, while BPCL and IOCL rallied 38.3% and 29.3%, respectively.
Source: Financial Express
To partner OMCs in West Coast project; Saudi company says it is also keen to enter the fuel retailing business in the country. Saudi Aramco, petrolium sector, petrolium industry, economy, india Saudi Aramco will supply at least 50% of the crude to be processed at the planned refinery, he said. The company may also bring a partner for its share in the refinery later. In what could be one of biggest foreign investments in India’s petroleum sector, oil giant Saudi Aramco on Wednesday signed a memorandum of understanding to be a 50% partner in a $44-billion West Coast refinery and petrochemical project called Ratnagiri Refinery and Petrochemicals. The refinery, slated to be India’s largest facility, is being planned by the country’s three state-run oil marketing companies — Indian Oil Corporation, Hindustan Petroleum Corporation and Bharat Petroleum Corporation. The upcoming refinery will have a capacity to process 1.2 million barrels of crude oil per day and is expected to produce around 18 million tonnes of petrochemical products every year. “Large as this project may be, it does not by itself satisfy our desire to invest in India… We see India as a priority for investments and for our crude supplies,” Saudi energy minister Khalid al-Falih said at the 16th International Energy Forum here. “We’re very much interested in retail… We want to be consumer-facing,” he said. Saudi Aramco will supply at least 50% of the crude to be processed at the planned refinery, he said. The company may also bring a partner for its share in the refinery later. Falih added Saudi Aramco’s entry will bring lower cost of financing due to the company’s higher credit ratings. The refinery project is currently facing some protest from the locals regarding land. However, B Ashok, who is heading the West Coast refinery, said all efforts are on and project is well on its course. The project is expected to be ready by 2025. The pre-feasibility study of the refinery has been completed and the project’s final configurations are being finalised. “India has always been a priority destination for us. It’s geographically adjacent… It’s a large population with a large economy. I think more recently, the economy has really taken off. We have seen an inflection point into economic as well as energy demand and the companies have also grown to appreciate the values that Saudi Aramco and the kingdom bring in terms of reliability and consistency of energy supplies as well as the relationships that exist which are very important for the long-term sustainability of the businesses on both sides,” said Saudi Arabian energy minister added.
Source: Financial Express
NEW DELHI: Shares of Alok IndustriesNSE 9.88 % climbed 5 per cent in Thursday's trade on reports that Reliance Industries is set to acquire the company. A majority of lenders to the bankrupt textile company have voted in favour of the resolution plan given by billionaire Mukesh Ambani’s company, two officials familiar with the development told ET. JM FinancialNSE 2.96 % ARC had bid, in partnership with Reliance Industries, for Alok Industries, making all cash offer in the range of 15-20 per cent of outstanding loan, they said. Tracking the development, the stock hit a 5 per cent upper circuit at Rs 4.24 on BSE around 10.15 am (IST). “The offer is marginally higher than the liquidation value of the company and that is the reason banks are willing to vote in favour,” one of the officials said.The liquidation value of the company is pegged at Rs 4,200 crore while the offer is in the range of Rs 4,500-5,000 crore, the sources said. There is no equity upside for lenders under the proposal given by JM Financial ARC and Reliance.Alok Industries has received claims of Rs 29,500 crore from lenders with State Bank of India being the lead bank. On Wednesday, the resolution professional had held a meeting of committee of creditors to vote for the resolution plan.
Source: Economic Times
Textile major Arvind is targeting revenues of `20,000 crore by 2023, Arvind chairman and managing director Sanjay Lalbhai told a television channel on Wednesday. Arvind’s businesses include textiles, garments, brands, real estate and engineering. The company posted revenues of `9,314 crore in FY17, up 15.1% over those in FY16. The operating profit (Ebitda) declined 1.1% to Rs 1,021 crore while the net profit grew just 1.2% to `320 crore. For the nine months to December, 2017, the company reported revenues of Rs 7,863.32 crore, up 15% year-on-year. The Ebitda fell 15.6% y-o-y to `268.39 crore while the net profit came off 10.2% year-on-year to Rs 200.34 crore. “In the brand and retail segment, each of our brands is growing at 20% and we see this business growing to `9,000 crore in the next five years from Rs 4,000 crore at present. Demerger will help raise resources independently and we will have four listed companies by 2019,” Lalbhai said. Over 35% of the company’s revenues come from the sales of brands like Calvin Klein, Flying Machine, Arrow, Tommy Hilfiger, Aeropostale and Gap, among others. Revenues for the branded apparel segment came in at `961 crore in Q3FY18, up 23.6% year-on-year, while Ebitda improved almost 123% to Rs 67 crore. The company is also focusing on growing its textile business by 10% to 15% year-on-year in the next three years. The textiles business of Arvind, with a base of Rs 6,000 crore, is growing at around 6% at present, said Lalbhai. Revenue at Arvind’s textile business grew 9.41% to `1,534.43 crore in Q3FY18. According to analysts at CLSA, Arvind’s management has earmarked `1,500 crore of capital to be invested over the next three years in processing and technology-driven innovations, creating capabilities in advanced materials and developing capacity in the high-growth garmenting division. The proposed demerger of the brands and retail business from the parent should help to create value with the businesses maturing and operating leverage would kick-in with scale over time. In textiles, the shift in favour of high asset turns and technology-driven expansion should drive value, the report said. Arvind had 1,137 stores across brands, 93 Unlimited stores and 32 specialty retail stores as of December 31.
Source: Financial Express
The rupee on Wednesday nosedived 32 paise to hit a fresh five-month low of 65.31 against the US dollar as surging crude oil prices and growing geopolitical uncertainties rattled forex market sentiment. This is the lowest closing for the home currency since November 14, 2017, when it had ended at 65.42 against the greenback. Brent crude, an international benchmark, is trading near a four-year peak of $71.70 a barrel in early Asian trade. A sense of volatility prevailed in the domestic currency market after a rapid surge in global crude prices driven by prospects of geopolitical uncertainty in the Middle East following US President Donald Trump's promise to respond forcefully to the suspected chemical attack in Syria. Heavy dollar demand from state-owned banks, likely on behalf of oil marketing companies and corporates, along with broad-based dollar strength against some currencies overseas largely pressurised the Indian currency. Persistent capital outflows too kept the local unit under pressure. Moreover, currency traders preferred to stay on the sidelines and avoided taking any long positions ahead of key macroeconomic data release -- industrial production and inflation -- tomorrow. The intense volatility pulled the rupee to hit a fresh low of 65.32 intra-day during mid-afternoon after a sense of panic rippled through currency trading floors. In contrast, domestic bourses maintained their upbeat trend for the five straight sessions. As India being the world's third-biggest oil importer, a relentless surge in crude prices could pose challenges for policymakers and far-reaching implications on economic growth and current account deficit despite relatively strong macroeconomic fundamentals, a forex dealer commented. In the latest monetary policy review of the Reserve Bank of India (RBI) outlined for the new fiscal a higher growth rate of 7.4 per cent and lowered inflationary forecast at 4.7-5.1 per cent. At the inter-bank foreign exchange (forex) market, the rupee resumed on a steady note at 64.99, tracking global currency volatility coupled with steady capital outflows. After trading in a narrow range during the early part of the day, the local unit tumbled down to hit a low of 65.32 in late afternoon deals before ending at 65.31, revealing a sharp loss of 32 paise, or 0.49 per cent. The RBI, meanwhile, fixed the reference rate for the dollar at 65.1272 and for the euro at 80.5884. Globally, the US dollar fell to a two-week low against a basket of rival currencies as trade war fears receded but uncertainty over possible Western military action against Syria bred risk aversion among some investors. The dollar index, which measures the greenback's value against a basket of six major currencies, was down at 89.11. In the cross currency trade, the home unit remained under pressure against the pound sterling to end at 92.59 from 92.14 and dropped further against the euro to finish at 80.85 from 80.41 earlier. It also drifted sharply against the Japanese yen to settle at 61.16 per yens from 60.76 on Tuesday.
Source: Business Standard
Black and silver modern Jamdani with ghicha-feel thick thread texture Kamaladevi Chattopadhyay had set up Crafts Council of India in 1964 as a movement inspired by Mahatma Gandhi and Rabindranath Tagore to look at the production of handicrafts and textiles as a catalyst for social change. The organisation would not be a patron, but a facilitator for the artisans, the makers of crafts and textiles, in whose hands lie the artistry and the skills to make the objects that preserve the country's heritage. The first Kamala store, the retail outfit of Crafts Council of India, was set up in Delhi in 2005. The next Kamala was set up in Calcutta in 2008. Chennai got a store in 2017. A royal blue Begampuri with a dramatic red border and a red-and-white anchal In 10 years, Kamala in Calcutta has established itself as the address where one finds the finest handloom saris. Kamala collects handlooms from all parts of India, but as Nava Varsha approaches, here we feature Kamala's collection of Bengal saris. Phulia sari in the contemporary, popular colour combination of orange and pink. The elephant motif on the anchal is the signature style of artisan Ramananda Basak. At the store, every sari is explained minutely and joyfully by Kasturi Menon, former IAS officer and now honorary president of Crafts Council of India, which is a not-for-profit organisation. For years, Menon has been travelling in the country widely to handpick what gets into the store. “What we call a Phulia sari now used to be called Tangail,” says Menon. “Originally weavers from Tangail in East Bengal settled in Phulia in Nadia district. But the weavers in Shantipur were from this side of Bengal, Shantipuri being another fine Bengal weave sari. So the latter will always treat you to Nikhuti (a kind of sweet) and insist that they are Ghotis (Bengalis from West Bengal) and are not to be confused with Tangail or Phulia sari weavers," smiles Menon. Traditional Begampuri in white with a broad red lower border and a narrower red border on top. The Begampuri is another story. This sari, which comes from Begampur in Hooghly, is traditional, too, deriving from an old design called Chiru. The Begampuri, not to be confused with Dhanekhali, is less fine than a Phulia with its lower weave count, but it has transformed of late. For Kamala’s collection, Menon, working with the central government outfit Weaver's Service Centre, suggested brighter colours for the sari, which now look dramatic with its traditional motifs. Grey Phulia sari with self-weave and sequins and emerald green border. The subtle sequins on the body lend it a modern look. The biggest change that has come about in handloom in India recently is in the yarn; linen is mixed with cotton, silk with cotton. Kamala is all for such innovation. It also sells jewellery, toys and home decoration. But Menon has not only collected fine textiles and handicrafts. The artisans are Kamala's assets. Individual sari weavers are mentioned by the store with pride; the style explained. Kamaladevi's vision remains alive.
Source: Telegraph India
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1382.78 |
USD/Ton |
0% |
4/11/2018 |
|
VSF |
2296.68 |
USD/Ton |
0% |
4/11/2018 |
|
ASF |
2781.45 |
USD/Ton |
0% |
4/11/2018 |
|
Polyester POY |
1435.23 |
USD/Ton |
0.50% |
4/11/2018 |
|
Nylon FDY |
3623.83 |
USD/Ton |
0% |
4/11/2018 |
|
40D Spandex |
5880.78 |
USD/Ton |
0% |
4/11/2018 |
|
Nylon POY |
3830.45 |
USD/Ton |
-0.21% |
4/11/2018 |
|
Acrylic Top 3D |
6007.93 |
USD/Ton |
0% |
4/11/2018 |
|
Polyester FDY |
1684.76 |
USD/Ton |
0.47% |
4/11/2018 |
|
Nylon DTY |
3401.32 |
USD/Ton |
-0.47% |
4/11/2018 |
|
Viscose Long Filament |
2988.07 |
USD/Ton |
0% |
4/11/2018 |
|
Polyester DTY |
1716.55 |
USD/Ton |
0.47% |
4/11/2018 |
|
10S OE Cotton Yarn |
2291.91 |
USD/Ton |
0% |
4/11/2018 |
|
32S Cotton Carded Yarn |
3673.90 |
USD/Ton |
0% |
4/11/2018 |
|
40S Cotton Combed Yarn |
4203.96 |
USD/Ton |
0% |
4/11/2018 |
|
30S Spun Rayon Yarn |
3051.65 |
USD/Ton |
-0.26% |
4/11/2018 |
|
32S Polyester Yarn |
2164.76 |
USD/Ton |
-0.07% |
4/11/2018 |
|
45S T/C Yarn |
3035.75 |
USD/Ton |
0% |
4/11/2018 |
|
40S Rayon Yarn |
2336.42 |
USD/Ton |
0% |
4/11/2018 |
|
T/R Yarn 65/35 32S |
2558.93 |
USD/Ton |
0% |
4/11/2018 |
|
45S Polyester Yarn |
3194.69 |
USD/Ton |
-0.50% |
4/11/2018 |
|
T/C Yarn 65/35 32S |
2717.87 |
USD/Ton |
0% |
4/11/2018 |
|
10S Denim Fabric |
1.48 |
USD/Meter |
0% |
4/11/2018 |
|
32S Twill Fabric |
0.91 |
USD/Meter |
0% |
4/11/2018 |
|
40S Combed Poplin |
1.27 |
USD/Meter |
0% |
4/11/2018 |
|
30S Rayon Fabric |
0.71 |
USD/Meter |
0% |
4/11/2018 |
|
45S T/C Fabric |
0.75 |
USD/Meter |
0% |
4/11/2018 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.15894USD dtd. 11/4/2018). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
China is well prepared and will not hesitate to fight back if the United States escalates its trade spat with Beijing, the commerce ministry said on Thursday, adding Chinese President Xi Jinping’s pledge to cut import tariffs is not a concession. Xi on Tuesday vowed to open the country’s economy further and lower import tariffs on products like cars. U.S. President Donald Trump responded in a tweet saying he was “thankful” for Xi’s kind words on tariffs and access for U.S. automakers, as well as his “enlightenment” on the issue of intellectual property. It would be misleading to say Xi’s pledge at the Boao Forum this week – Asia’ version of Davos – was a concession to the United States, commerce ministry spokesman Gao Feng said at a regular press briefing in Beijing. Xi was merely outlining China’s strategy to open up further, which had nothing to do with its trade friction with the United States, Gao said. Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.
Source: Financial Express
HCM City (VNA) – The Vietnam Textile and Garment Industry Expo – SaigonTex 2018, the biggest and most influential event of the textile and garment industry of Vietnam, opened in Ho Chi Minh City on April 11. The event is organised by the Vietnam National Garment and Textile Group (Vinatex), the Vietnam Chamber of Commerce and Industry and Hongkong-based CP Exhibition company. It is Vietnam’s sole textile and garment industry expo meeting UFI standard of the Global Association of the Exhibitor Industry. This year, SaigonTex attracts the participation of more than 900 firms from 27 countries and territories across the world, including Belgium, Canada, France, Germany, Hong Kong (China), India and Indonesia. Many leading experts are expected to attend the event to suggest measures to address the sector’s challenges. Many advanced textile equipment machinery and spare parts as well as new materials are introduced at the event. It also offers opportunities for domestic and international firms to meet and promote their brands, as well as seek new customers and expand markets. Numerous fashion collections of famous Vietnamese designers are also on display. President of the Vietnam Textile and Apparel Association Vu Duc Giang said SaigonTex 2018 is hoped to not only enable participants to explore new garment-textile equipment, but also bolster investment in the field.The event runs until April 14 at the Saigon Exhibition and Convention Centre.-VNA
Source: Vietnam plus
Dhaka – The country’s apparel sector has reached a state where it is to cope with the probable challenges that Bangladesh may face as a developing nation, said Dutch-Bangla Chamber of Commerce & Industries President Faruk Hasan. “Likewise in the past, newer challenges will arise in the sector, and we will successfully handle those,” he said while replying to reporters at a press briefing on sending high profile Bangladeshi delegates to the Netherlands at BEZA headquarters in Karwan Bazar. Addressing the program Executive Chairman of Bangladesh Investment Development Authority (BIDA) Kazi M Aminul Islam said, BIDA has undertaken several initiatives to attract foreign investments here. ”The One-Stop-Service is set to tentatively launch within June-July this year to that end.” Bangladesh Economic Zone Authority (BEZA) Executive Chairman Paban Chowdhury, BEZA Executive Member Admin Mohammed Ayub, Payra Port Authority Chairman Commodor M Jahangir Alam and Deputy Head of Mission Embassy of the Kingdom of the Netherlands in Dhaka Jeroen Steeghs were, among others, present.
Source: UNB
LAHORE -Pakistan Yarn Merchants Association (PYMA) office bearers have demanded the government to take immediate notice of increasing rates of yarn. In a press release issued here on Wednesday, Chairman Khurshid A. Shaikh, Zonal Chairman Muhammad Aslam and Zonal Vice Chairman Muhammad Khalid in their appeal to government have drawn attention over non-availability of yarn raw material as per production demand. They said domestic Filament Yarn Manufacturers are getting undue advantage of regulatory duty imposed on imported polyester yarn. Due to this situation, Yarn prices have been highly increased and domestic polyester fabric industry faces severe dangers.
Source: UrduPoint News
Be warned: watch “Made in Cambodia” on Salon Premium and you may never look at the clothes in your closet the same way again. But that’s a good thing. Asad Faruqi was enlisted by the non-profit organization, Remake, to direct a film that follows three New York City Parsons fashion school students as they travel to Cambodia to examine the conditions of garment workers. Faruqi spoke with Salon about his powerful film, “Made in Cambodia,” which should move you to tears or, perhaps, to forever change your wardrobe.
How did the project, and your involvement, come together?
I directed “Made in Cambodia” for a San Francisco based advocacy organization called Remake, whose mission is to make fashion a force for good. Their founder Ayesha Barenblat and I are from the same hometown in Karachi, Pakistan and I was intrigued by Remake's focus to put a human face to the invisible women who make our clothes in factories around the world. We first collaborated on a different short: "
Made in Pakistan." When the opportunity arose to shoot in Cambodia with next-generation fashion designers coming face to face with factory workers, I jumped at the chance to direct the project. Can you tell us about a particularly memorable moment from the production? We first met one of the workers, Sreyneang, at a mass production factory. She had been working in factories since she was a child. The Parsons students immediately bonded with her. She wanted to see pictures of their university in New York and spontaneously invited us all to her home. That was a really powerful moment — to be able to see how she lived and meet her daughters. Her love and generosity — she insisted everyone stay to have a meal with her — really moved us. She wanted the world to know her story. Another memorable moment was during a really rainy day where we drove an hour out of Phnom Penh to a safe location where workers from subcontracted factories (the likes of Zara, H&M and Tommy Hilfiger) had gathered to share their stories with us. One of the women, Char Wong was a force of nature. The eloquence with which she described the impossible output incentive targets set-up by the factory and her fierceness to keep fighting for work with dignity, was very moving. It looks like there were many moments during shooting when the Parsons students were about to be overwhelmed with emotion. It was an overwhelming experience for everyone on the team to be inside a factory and see women working. We wanted the viewers to connect with the women who make our clothes today and to also be drawn into the students’ journey in a subtle way. Too often the stories of sweatshops are focused on shock and awe. We wanted to tell a different story, showing how the students emotionally connected with the workers in a more human and authentic way. I felt Remake's stories are focused on building long lasting empathy and this seemed like the right way to tell this story.
How has the filmbeen used by Remake?
Remake has toured with the film up and down the country, showing it across U.S. campuses, a few film festivals and sharing the journey online. The film has been a powerful way for millennial consumers and next generation designers to think about the millions of women who make our clothes. We have heard from many early adopters within Remake's movement that the film helped them break up with fast fashion and to instead commit to investing in brands that are pro-women and our planet.
Have clothing corporations responded?
Labor and advocacy groups have applauded the film. Fashion schools such as California College of the Arts and Parsons have been motivated to take a more human centered approach to their sustainability courses since the film screening. Transparent, slow fashion brands have been grateful for Remake's efforts though the larger clothing corporations have been muted in their response, with some questioning how Remake got into factories and talked to workers in the first place.
Can you give us an update on Sreyneang or any of the Parsons students who went to Cambodia?
Sreyneang continues to work at a large factory, picking up overtime hours but has managed to keep her daughter in school. She is focused on ensuring that her daughter has a better, brighter future. All three students’ final design theses were deeply influenced by the Remake journey. Allie is now interested in becoming a journalist that shines a light on the fashion industry; Casey has recently graduated and is hoping to work for a sustainable fashion brand; and Anh attributes embracing her identity partly to this experience. Anh wants to head to Vietnam next, to get to know what conditions are like in the country where her parents were born.
What are you working on now?
I recently finished a film, “Armed with Faith,” about a group of bomb technicians working in the North West of my home country of Pakistan. The film was broadcasted on PBS earlier this year and is playing at festivals. And Remake is currently touring with "Made in Sri Lanka" that gets into the subtle nuances of garment workers not making a living wage and being up against sexual harassment, given that this is an industry that is powered by women but controlled by men. We hope for people who watch the next short, to ask the question, “Where is the #metoo movement for garment workers?”
Source: Salon
Retail apparel prices fell 0.6% in March after rising in the first two months of the year, with declines in women’s and men’s prices, the U.S. Bureau of Labor Statistics (BLS) reported Wednesday in its Consumer Price Index. The lower prices do follow a longer-term deflationary pattern for apparel prices, but also could be an indication of stores trying to lure shoppers with lower-priced merchandise in a generally soft retail environment. The apparel CPI decline was also in line with the overall CPI, which decreased 0.1% in March on a seasonally adjusted basis after rising 0.2% in February. The all items index rose 2.4% from a year earlier–the largest 12-month increase since the period ending March 2017 and higher than the 1.6% average annual rate over the past 10 years, BLS noted. Apparel prices were 0.3% higher than a year ago on a non-adjusted basis. The core index, minus the volatile food and energy sectors, rose 0.2% in March, matching February’s increase, the BLS said. Economists noted this as a sign of inflation brought on by a weak dollar and increased government spending that will likely lead to interest rate hikes. “The details in this report were broadly consistent with our estimates, implying no revision to our estimate that personal consumption expenditures rose at a 1.1% annual rate in the first quarter,” Ken Matheny, executive director of U.S. economics at Macroeconomic Advisers by IHS Markit, said. Noting the swing in apparel prices, Matheny said, “Contributing to the increase in the core CPI in March were large price increases for hospital services and airline fares.” In apparel, women’s wear prices fell 2.5% last month, led by declines of 4 percent in suits and separates; 2.5% in the underwear, nightwear, sportswear and accessories group; 1.7% in dresses and 0.9% in outerwear. Men’s wear prices declined 1 percent, with decreases of 2.7% in shirts and sweaters, 2.5% in suits, sport coats and outerwear, and 2.1% in pants and shorts. Furnishings was the only category with an increase in prices, rising 1.2% in the month. Boys’ apparel prices fell 1.2%, while girls’ apparel prices were up 0.3% in the month. Retail footwear prices increased 1.2% in March, with women’s footwear prices up 0.8%, men’s rising 2.1% and boys’ and girls’ increasing 2.8%. In the overall economy, a decline in the gasoline index more than outweighed increases in the indexes for shelter, medical care and food to result in the slight seasonally adjusted decline in the all items index, the BLS said. The energy index fell sharply due mainly to a 4.9% decrease in the gasoline index. The index for food rose 0.1 percent over the month, with the indexes for food at home and food away from home both increasing. The energy index increased 7 percent over the past 12 months and the food index advanced 1.3%, cutting into discretionary spending on areas like clothing and footwear. Along with shelter and medical care, the indexes for personal care, motor vehicle insurance and airline fares all rose. The apparel index decline was joined by decreases in communication, and used cars and trucks. Matheny said based on the report, IHS Markit left its first quarter gross domestic product (GDP) tracking at 1.6% and second quarter GDP tracking at 3 percent.
Source: Sourcing Journal Online
