Inflation in India falls to 0%

[SarthakGanguly]

Abey Murkho, inflation zero nahi hui.

Corrupt communal evil fascist Modi.

 

[Arya Desa]

Your idiotic comments remind me of the fact that even for an imposter or even a false flagger for that matter - old habits die hard - once a moron forever a moron

He is cheeni. I once brought up that orientals eat insects. This guy went ballistic calling me all sorts of names including, but not limited to, racist.

 

[Juggernautjatt]

Abey Murkho, inflation zero nahi hui.

Corrupt communal evil fascist Modi.

More than government it is sharp correction in global commodity prices that led to fall in WPI inflation.
Decline in crude oil prices also clearly played a role, both directly and indirectly, through its impact on input costs.

 

[SarthakGanguly]

View attachment 176240



More than government it is sharp correction in global commodity prices that led to fall in WPI inflation.
Decline in crude oil prices also clearly played a role, both directly and indirectly, through its impact on input costs.

You did not thank it. Do you believe Modi is NOT fascist evil or communal?

 

[Juggernautjatt]

You did not thank it. Do you believe Modi is NOT fascist evil or communal?

No I believe except Modi everyone in BJP is evil, communist, fascist & etc. etc. . That is why I didn't thank your post

 

[HariPrasad]

Bad very bad...

 

[Chanakya's_Chant]

Zero inflation is bad. Moderate inflation is good. A moderate inflation encourage people to invest or spend and thus keeps the money flowing in an economy

Bad very bad...

wow. Be careful, that low is actually a bad thing, a very, very bad thing, worse than high inflation rates.

Is it? I was just gonna congratulate them...you know with the gori buying tamatar and all

Kya baat kar rahe ho

Don't tell me India is about to do a Japan of the last 25 years？

It’s Way Too Early for India to Start Fretting About Deflation​

By Ramond Zhong

Is India morphing from a stagflationary basket case to the world’s next major victim of deflation?

The latest reading on India’s wholesale-price index is a big, fat, dramatic-looking zero. It’s some small vindication for the country’s central bank, which has refused to loosen lending conditions until price rises are firmly tamed. But it’s also a scary-seeming echo of the deflationary rumbles that are currently spooking policy makers in advanced economies.

After all, India’s economy—like Japan’s and the eurozone’s—is growing well below its potential, at least according to the broadest indicators. GDP growth decelerated in the third quarter. Industrial production—an admittedly capricious bit of data—swung sharply downward in October. Indian corporations are working to pay down high levels of debt, which constrains their new borrowing and spending.

Some alternative indicators paint a rosier picture of economic activity. And most forecasters still expect growth to pick up soon on the belief that Prime Minister Narendra Modi’s government will deliver business-friendly policy reforms.

But so far, there are reasons to believe weak demand is at least partly behind the recent weak price growth. A year ago, India-watchers were fretting about stagflation, or slow economic growth coupled with high inflation. Slow growth with low inflation at least puts India’s economic weakness into a more familiar category.

Still, on balance, it’s way too early to start fretting about sustained price drops for Indian firms and households.

One reason is that many of the forces suppressing inflation in India at the moment should prove temporary. Fuel prices, which make up 15% of the wholesale-price index, fell nearly 5% year-on-year in November thanks to lower global crude prices. Those may be bottoming out soon.

Another big driver of tumbling inflation in India has been vegetable prices, where so-called “base effects” have exaggerated the recent moderation. That is to say: Onion prices, for instance, were growing at an extra-fast clip last autumn, which means today’s inflation numbers are being calculated relative to a high base a year earlier.

The major reason not to add spiraling deflation to the list of India’s economic worries, however: The slackness in Asia’s third-largest economy just isn’t of the magnitude that put a longer-term chill on inflation in Japan and the eurozone.

India’s population is young and growing, which supports firms’ expectations of future pricing power. Government spending, despite the Modi administration’s efforts to keep it under control, won’t be a major drag on total economic output going forward. And total indebtedness—the government’s, institutions’ and households’ combined—relative to the size of the economy is nowhere near European or Japanese levels.

Don’t call it a #firstworldproblem. But deflation, for now at least, just isn’t one of India’s problems.

Source:- It’s Way Too Early for India to Start Fretting About Deflation - India Real Time - WSJ

 

[Echo_419]

It’s Way Too Early for India to Start Fretting About Deflation​

By Ramond Zhong

Is India morphing from a stagflationary basket case to the world’s next major victim of deflation?

The latest reading on India’s wholesale-price index is a big, fat, dramatic-looking zero. It’s some small vindication for the country’s central bank, which has refused to loosen lending conditions until price rises are firmly tamed. But it’s also a scary-seeming echo of the deflationary rumbles that are currently spooking policy makers in advanced economies.

After all, India’s economy—like Japan’s and the eurozone’s—is growing well below its potential, at least according to the broadest indicators. GDP growth decelerated in the third quarter. Industrial production—an admittedly capricious bit of data—swung sharply downward in October. Indian corporations are working to pay down high levels of debt, which constrains their new borrowing and spending.

Some alternative indicators paint a rosier picture of economic activity. And most forecasters still expect growth to pick up soon on the belief that Prime Minister Narendra Modi’s government will deliver business-friendly policy reforms.

But so far, there are reasons to believe weak demand is at least partly behind the recent weak price growth. A year ago, India-watchers were fretting about stagflation, or slow economic growth coupled with high inflation. Slow growth with low inflation at least puts India’s economic weakness into a more familiar category.

Still, on balance, it’s way too early to start fretting about sustained price drops for Indian firms and households.

One reason is that many of the forces suppressing inflation in India at the moment should prove temporary. Fuel prices, which make up 15% of the wholesale-price index, fell nearly 5% year-on-year in November thanks to lower global crude prices. Those may be bottoming out soon.

Another big driver of tumbling inflation in India has been vegetable prices, where so-called “base effects” have exaggerated the recent moderation. That is to say: Onion prices, for instance, were growing at an extra-fast clip last autumn, which means today’s inflation numbers are being calculated relative to a high base a year earlier.

The major reason not to add spiraling deflation to the list of India’s economic worries, however: The slackness in Asia’s third-largest economy just isn’t of the magnitude that put a longer-term chill on inflation in Japan and the eurozone.

India’s population is young and growing, which supports firms’ expectations of future pricing power. Government spending, despite the Modi administration’s efforts to keep it under control, won’t be a major drag on total economic output going forward. And total indebtedness—the government’s, institutions’ and households’ combined—relative to the size of the economy is nowhere near European or Japanese levels.

Don’t call it a #firstworldproblem. But deflation, for now at least, just isn’t one of India’s problems.

Source:- It’s Way Too Early for India to Start Fretting About Deflation - India Real Time - WSJ

Indeed people who are saying this don't know for how many years we have tolerated Inglation