With inflation fast approaching zero per cent, bankers have sought to allay fears that the country may be in the deflation mode on grounds that the consumer price index was still high and deflation was a statistical phenomenon due to base effect. Deflation happens in the economy if negative inflation sustains over a period of time. Deflation is unlikely to have any major impact on the economy. Negative inflation, if it happens, will occur mainly on account of declining oil prices, easing monetary policy. Many experts say that it is unlikely to stay long.
Inflation, now at 0.27%, is unlikely to stay below zero for more than one-two weeks. This will not have any major impact on demand as the consumer price inflation is still high. It (deflation) is unlikely to remain long and affect the common man. India's inflation started declining to historic lows after the Reserve Bank started to aggressively reduce its policy rates.
Inflation, now at 0.27%, is unlikely to stay below zero for more than one-two weeks. This will not have any major impact on demand as the consumer price inflation is still high. It (deflation) is unlikely to remain long and affect the common man. India's inflation started declining to historic lows after the Reserve Bank started to aggressively reduce its policy rates.
1 comments:
it is aldready below zero for more than 9 weeks???? this show that even the best cant predict economics
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