Need for caution on economy

Several surveys have indicated that the rural markets have picked up while urban markets remain markedly sluggish. Private sector capital outlays still remain modest

Multiple factors impact the mood of the electorate but one constant in almost all polls is the prevailing consumer price inflation. Particularly the price of vegetables, especially onions and tomatoes. For the common consumer, the broader state of economy matters little if his daily essential needs begin to pinch his pocket. Take the recent poll in America. By all accounts, the US economy is doing very well, growing at over 2% annually. This is remarkable for the world's biggest economy. Indeed, job growth in the Biden years has been excellent. Yet, one major reason, along with immigration—their Bangladeshis—invariably cited for the defeat of Democratic presidential candidate, Kamala Harris, is the consumer inflation. Prices of milk, bread and other daily food items have ruled inordinately high in recent months. In short, when voters get stressed about daily expenses, compromising on one or the other food item to make ends meet, they register protest against the ruling dispensation. Therefore, the incumbent coalitions in Jharkhand and Maharashtra need to be wary of the consumer resistance while seeking re-election, given that the price of veggies, especially onions and tomatoes, is hurting voters. In certain places onions are selling at Rs 80 per kilogram. Prices have doubled with the onset of monsoon.