Wholesale Price Index (WPI) based inflation was (-)2.36 per cent in May. It has been in the negative zone since November 2014.
The government will release on Tuesday the data on wholesale price inflation, which had stayed in the negative zone for seven consecutive months.
The retail inflation measured in terms of Consumer Price Index (CPI) was at 5.01 per cent in May. The rate of price rise was at 6.77 per cent in June last year.
Monetary policy should take output into account directly, not switch focus to WPI.
Inflation in May last year was 6.18 per cent. The lower inflation comes amid a forecast of deficient monsoon this year.
In these unusual times, measures of inflation make monetary policy a fraught issue.
The external environment has had both a positive and negative effect on India’s economy.
Statistics and facts give the lie to P. Chidambaram’s ‘anecdotal evidence’ and stray remarks. If inflation had not fallen, and corruption continued, they would have figured at the top of his column.
Falling inflation and a slowing manufacturing industry would reinforce expectations that the Reserve Bank of India will again cut interest rates soon from the current 7.5 percent.
WPI-based inflation has been in the negative zone since November 2014 mainly on account of cheaper food and fuel products.
Deflation is not an unmixed blessing. Sometimes it can be more calamitous than inflation.
Joker in this video by ‘Fame Comedy’ has something serious to tell you and mind it you may not find it funny.
The headline inflation was at -2.06 per cent in February. It was 6 per cent in March 2014.
On inflation, the RBI said it will stay focussed on ensuring that the economy disinflates gradually and durably.
Desai said rate cuts of the RBI should be a continuous process.