Blah Blah Blah of the Blog

The launch of ArthGyan PerCapita signifies an era of learning beyond classrooms and textbooks. The field of economics as we know ( i assume we know) is very dynamic with theories being used and challenged at the same time. The mode of discussion , contradiction, question-solution will enable us in broadening our outlook & understanding the nuances of the subject thru real life examples especially current world scenario. 

Regulars on the Menu

• Storm-Dorm ; The weekly brainstorming session for the contributed posts which will include comments, Q&A, and the like.
• De-Jargonize ; Terminologies & Concepts would be explained on a regular basis to increase comprehensive ability furthering understanding of business journals and publications.
• Poll-Khol ke Bol ; Conducting polls for future discussions & opinions on current happenings.
• Chanakya of the Month ; Each contributor's activity in terms of posts/comments/Q&A will be evaluated monthly and the best will be awarded gift vouchers or books ( not to forget a RISE in someone's good graces).
• Weekly Digest ; Best stories/news of the week will be posted and you can voice your views on them.

Guidelines

• Members willing to contribute topics and posts have to mail to arthgyan.percapita@gmail.com
• Brevity is encouraged, word limit 200-300 words.
• Challenge the post/comments with due respect.
• Usage of inappropriate language is strictly prohibited.

Disclaimer

• The decisions of the authors is final regarding conflicts/disputes and any objection will not be entertained.
• The authors reserve the right to edit, delete and bar any post or comment to uphold the integrity of the blog.
• The publishing's on this blog are solely the views and opinions of the respective individuals and do not represent any institution/organization. 

Inflation and the festival time in India

Will it be yet another bleak and bland Dussehra, Pujo, Navratra and Deepavali? Considering the rising prices yet again and inflation continuing to remain above the 8 % mark for 20 consecutive months, this could be yet another difficult time for the average Indian households. Festivals in India hold a lot of buying potential, not just that people make festival related purchases, a lot of big ticket purchases like fridge, TV, cars and others get postponed to the festival period. Festivals in India also symbolize new beginnings, so new businesses are initiated in this period. With not just inflation on the rise, but expectations of inflation[i] touching all-time highs, there is limited reason for enthusiasm among the common masses.

Dip in planned air travel, fall in gold purchases are some of the leading indicators of what is to come this festival season. Caution is the key word with people preferring to not just spend less but also postponing any planned purchases. Hardening of interest rates make matters worse for households as borrowing power falls and personal loans are tough to come by. Festival times are of particular interest to the low income groups whose propensities to consume rise the maximum in such periods. Inflation shrinks not just their buying power but also their dreams. The bottom of the pyramid[ii] whose purchasing power has driven FMCG profits in the last few years may now contribute much less. Are these signs of a sticky patch or is it a meltdown for the festival season in India?

Does news of inflation set in fears or solidify concerns we have always had? Is there a silver lining to this phenomenon? Do you see something different?

                                                                           

Posted by Archana Pillai

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[i] RBI’s survey on inflation expectations is averaged well above the actual inflation figures. People are anticipating inflation and adjusting for it well in advance.

[ii] Phrase popularized by Prof C K Prahalad in his famed “Fortune at the Bottom of the Pyramid” to describe the poorest sections in an emerging market and the need to harness their latent buying potential.