Inflation Mars Dashain Spirit

The great festival of Dashain has begun. It is, among other things, the time when the business activities across the country peak. As money floods the market and merchandises are offered at steep discounts, consumers throng the markets and happily open their wallets, bringing cheers to the businessmen. Shops, which otherwise see few customers, are able to do brisk business. But since COVID-19 struck, the economy has been in the doldrums. Even years after the pandemic, a sense of gloom continues to pervade the global economy. When the economy was making the comeback effort, Russia-Ukraine war that broke out in early 2022 dealt a crushing blow, sending prices of fuel and essential commodities soaring. No country in the world, including Nepal, has remained immune to its all-pervasive impacts. 

Though crowds of would-be shoppers are flocking to the markets, few are actually buying the goods, say the businessmen. Why? Because runaway inflation has ate into people's earnings. Even those with enviable income can't afford to splurge on things they have waited for Dashain to come. On the one hand, with the plunged demand, our factories have been running at a fraction of their capacity, casting a shadow over the job creation and retention as well as denying people opportunities to earn. On the other, increased price of goods have put them out of reach. This means that we are dealing with the double whammy: an economic slump and skyrocketing prices. 

Though the Nepal Rastra Bank projects inflation to be at around 7 per cent, consumers are complaining that some essential goods have more than doubled in prices. With essential items consuming the income, consumers are left with scant money to spend other items. That has affected people's appetite for fancy or luxury goods, such as clothes, shoes, electronic gadgets, and food items – products people consider buying during festive occasions. Making things worse, a large number of young people who buy new vehicles and branded products have gone abroad, lowering their demand in the market.    

In a worrying sign, the private sector, the engine of the economy, is gradually losing confidence in the economy. When the private sector is in deep financial trouble, it bodes ill for the overall economy. It means that it is falling short in contributing to the government's coffers. When a government has little or no money to spend, ripples are felt across every sector. From as basic as funding the critically important health sector to building critical infrastructure, every sector gets hurt. The government must do everything in its power to turn this tide and lift its spirit.

Despite the sombre economy, the great festival has power to dispel the gloom from our heart and mind. After all, many of the forces affecting us are beyond our control. We, Nepalis, are known to survive and thrive in the toughest of time. Rekindling that innate spirit is the need of the hour. The time for merrymaking, feasting on delicacies, and homecoming for grand celebration has come. At the same time, unrestraint indulgence can spoil the party in ways that are shocking and unexpected. Remaining mindful of one's eating habit and keeping a check on the unfettered pursuit of pleasure can bring unadulterated joy to the festivities. Let us celebrate the festival staying within our limits.