Happy Diwali to ME visitors (is it really happy??)..

Wishing all the Mostly Economics viewers a very happy Diwali.

This blog does not wish to talk about economics today but is helpless. Once again, prices of most basic things that matter during Diwali are up, up and away. It is highly frustrating to see how the story just repeats each year with people taking advantages of all kinds of shortages.Hopefully, people have a peaceful Diwali amidst the crazy price rise for most things that matter in Diwali.

India needs a serious food disinflation policy which keeps drives prices of food lower. Each year some or the other crop is on a killing mission. This time it is the turn of the humble tuber,. And guess what no one is even making any noise about it. The amount of focus there is on whether markets will go up on mahurat trading, markets post-Diwali etc. is way over the top. Sometimes you wonder whether our media lives in Indian cities/towns at all.

The govt should be really serious about this food inflation business and look beyond the reported numbers. While in opposition, it made huge noises over food inflation. But has failed miserably itself while being in power. Even if commodity prices decline, the manufactured food items do not change and are expected to go up only. Low inflation is a misnomer as all it says is prices shall rise by lower %. But they will still rise. When things are unaffordable now, how are people going to pay for them tomorrow? And then during festivals, things even become costlier as there is so much of misselling.

By simply wishing people Happy Diwali does not help. Give them a reason to celebrate. And them means much more than the stock market investing community..

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One Response to “Happy Diwali to ME visitors (is it really happy??)..”

  1. econ neel Says:

    Happy Diwali and Happy New Year ..Sir.
    Lets see if are able to come to a stage where quality increase and price decrease. But i doubt if such a thing is clearly desirable……………May be i am a Low-inflation Guy rather deflation guy.

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