Consumer inflation

. This has become the bane of contention between the Reserve Bank of India (RBI) and the government. While the central bank claims that this is evil holding back India's growth story, the government chooses to ignore it. But amidst this, luxury retailers are the ones laughing their way to the bank. For inflation, if any, seems to be hurting only middle income households the most. As per Mint, the Indian luxury goods market is valued at about Rs 70 bn! Also, it is set to grow by 20% in five years. The luxury consumers in India belong to three categories: old money aristocracy, new money affluence and the professional elite. It seems that no inflation number is hurting the demand of these classes. Not that this niche consumption will boost the country's GDP to a sizeable extent. But the taxes on the rich levied on this year's budget certainly show that the government has it s eyes set on them.