Inflation at Record Low of just 0.44%….Good or Bad !?

The Common Man should be happy that Inflation is just announced at a record low of just 0.44%….but he’s not !….Where have consumer retail prices come down really ?…Food Costs are yet high

It’s the base effect working…We’re coming from High Inflation rates of over 10%  in the second half of 2008 when Oil had rushed to cross US $ 140/b…but has now receded sharply to below US $ 50/b

So what will such a low Inflation rate lead to?…..Clearly Interest rates and GDP Growth rates too will ease out…… Staring at us and growing stronger in focus are the danger signals of deflation and ebbing demand,atleast in the short term

You’d have to be godly optimistic to believe that stock market rallies will sustain   

One thought on “Inflation at Record Low of just 0.44%….Good or Bad !?

  1. And more so IMF has revised India’s growth rates for upcoming couple of years to around 5-6%…

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