Inflation in India falls to 0%

[Chanakya's_Chant]

Inflation hits a zero, lowest in over 5 years

As per data released by the government on Monday, the food inflation fell to nearly three year low of 0.63 per cent. Food inflation is on decline since May.​

NEW DELHI: Wholesale price inflation hit a zero level in November, the lowest in about five and half years, on account of decline in prices of food, fuel and manufactured items.

The Wholesale Price Index (WPI) based inflation was at 1.77 per cent in October and 7.52 per cent in November 2013.

As per data released by the government on Monday, the food inflation fell to nearly three year low of 0.63 per cent. Food inflation is on decline since May.

This is probably the first time when WPI inflation has hit exact zero level. The last time WPI was lower than this was (-)0.3 per cent in July 2009.

Onion price contracted 56.28 per cent as compared to a contraction of 59.77 per cent in October. In case of vegetables, the contraction was 28.57 per cent. However, prices of protein rich items of egg, meat and fish rose during November at 4.36 per cent, while inflation in potato stood at 34.10 per cent.

Inflation in manufactured products, like sugar, edible oils, beverages and cement, fell to 2.04 per cent in November as against 2.43 per cent in the previous month. Prices in fuel and power segment contracted by 4.91 per cent, as against 0.43 per cent inflation in October.

The sharp drop in WPI inflation, which fell for the sixth month in a row, came at the back of retail inflation declining to a record low of 4.38 per cent in November.

The decline in both retail and WPI inflation for November coupled with contraction of industrial production to 4.2 per cent in October, will put pressure on RBI to lower interest rates to boost growth.

The Reserve Bank of India has maintained a status quo in interest rate since January. The RBI factors in retail inflation while formulating its monetary policy.

Finance minister Arun Jaitley too on several occasions had nudged the RBI to cut rates. The issue also figured during a debate in the Lok Sabha last week.

RBI governor Raghuram Rajan has emphasised that interest rate cut by itself would not lift the economy. Industry has been demanding easing of interest rates to boost growth, which has slumped to 4.7 per cent in 2013-14. The economy is estimated to grow in the range of 5.4-5.9 per cent this fiscal.

Source:- Inflation hits a zero, lowest in over 5 years - The Times of India
Rajan Winning At Fighting India's Inflation - Forbes

 

[ito]

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

 

[TopCat]

Bad very bad...

 

[Dem!god]

ohh common.. its WPI and not CPI.. its cpi inflation that we have to incur in.our day to day life... though lowering of WPI will bring down CPI, but CPI will always be there may be at 4-5%..

 

[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

We need to look the other way around - The Reserve Bank of India has maintained a status quo in interest rate for about a year and now its almost confirmed that in January '15 they will cut down the same having a significant positive impact on India's GDP growth rate! IMHO at this point of time - boosting up the economy/GDP growth rate is what we should go for it has been 5 years since that 10% growth rate in 2010. India can no more afford to grow less than 7% considering the challenges ahead!

Bad very bad...

Care to explain how?

ohh common.. its WPI and not CPI.. its cpi inflation that we have to incur in.our day to day life... though lowering of WPI will bring down CPI, but CPI will always be there may be at 4-5%..

I love you avatar!

 

[Dem!god]

Bad very bad...

i know, anything happening in india will be always bad for jamatis..
nothing better expected from you type bunch of people.

 

[The Great One]

Inflation in India is a structural problem (supply-side) and not a monetary one. Rajan isn't winning anything, in fact he is creating more problems. Slowing inflation is a result of falling oil prices which has halted and even reversed the effects of de-regularizing of diesel prices.

 

[vsdave2302]

Inflation hits a zero, lowest in over 5 years

As per data released by the government on Monday, the food inflation fell to nearly three year low of 0.63 per cent. Food inflation is on decline since May.​

NEW DELHI: Wholesale price inflation hit a zero level in November, the lowest in about five and half years, on account of decline in prices of food, fuel and manufactured items.

The Wholesale Price Index (WPI) based inflation was at 1.77 per cent in October and 7.52 per cent in November 2013.

As per data released by the government on Monday, the food inflation fell to nearly three year low of 0.63 per cent. Food inflation is on decline since May.

This is probably the first time when WPI inflation has hit exact zero level. The last time WPI was lower than this was (-)0.3 per cent in July 2009.

Onion price contracted 56.28 per cent as compared to a contraction of 59.77 per cent in October. In case of vegetables, the contraction was 28.57 per cent. However, prices of protein rich items of egg, meat and fish rose during November at 4.36 per cent, while inflation in potato stood at 34.10 per cent.

Inflation in manufactured products, like sugar, edible oils, beverages and cement, fell to 2.04 per cent in November as against 2.43 per cent in the previous month. Prices in fuel and power segment contracted by 4.91 per cent, as against 0.43 per cent inflation in October.

The sharp drop in WPI inflation, which fell for the sixth month in a row, came at the back of retail inflation declining to a record low of 4.38 per cent in November.

The decline in both retail and WPI inflation for November coupled with contraction of industrial production to 4.2 per cent in October, will put pressure on RBI to lower interest rates to boost growth.

The Reserve Bank of India has maintained a status quo in interest rate since January. The RBI factors in retail inflation while formulating its monetary policy.

Finance minister Arun Jaitley too on several occasions had nudged the RBI to cut rates. The issue also figured during a debate in the Lok Sabha last week.

RBI governor Raghuram Rajan has emphasised that interest rate cut by itself would not lift the economy. Industry has been demanding easing of interest rates to boost growth, which has slumped to 4.7 per cent in 2013-14. The economy is estimated to grow in the range of 5.4-5.9 per cent this fiscal.

Source:- Inflation hits a zero, lowest in over 5 years - The Times of India
Rajan Winning At Fighting India's Inflation - Forbes

Modi is delivering what he had promised. It is proved now that we needed a political PM with spine rathert than a spineless rubber stamp economist. Modi is working like a super human being. The way he has delivered in front of foreign relation and deplomacy is beyond anybody's expection. This is a delivery on economic front. Government shall save huge amount which otherwise would have been paid by DA. This will led to interest cut. I can foresee a very bright future of Indian economy. Microeconomic fundamentals are getting strong and we shall see a new wave of economic surge in not more than one year.

 

[JohnyD]

Lets enjoy good time until either the US or the OPEC blinks! ..Moment OPEC cuts down the production or the US Shale Oil producing companies find producing oil at current market price is non-viable, we will see inflation heading back northeastwards!

 

[The Great One]

Modi is delivering what he had promised. It is proved now that we needed a political PM with spine rathert than a spineless rubber stamp economist. Modi is working like a super human being. The way he has delivered in front of foreign relation and deplomacy is beyond anybody's expection. This is a delivery on economic front. Government shall save huge amount which otherwise would have been paid by DA. This will led to interest cut. I can foresee a very bright future of Indian economy. Microeconomic fundamentals are getting strong and we shall see a new wave of economic surge in not more than one year.

LOL My wait for a bhakt is over.

 

[jha]

Its WPI. Good news anyway...

 

[Levina]

ohh common.. its WPI and not CPI.. its cpi inflation that we have to incur in.our day to day life... though lowering of WPI will bring down CPI, but CPI will always be there may be at 4-5%..

Explain how?
I didnt understand that.

 

[vsdave2302]

LOL My wait for a bhakt is over.

Ofcourse.

Prove otherwise if you can.

LOL My wait for a bhakt is over.

Ofcourse.

Prove otherwise if you can.

ohh common.. its WPI and not CPI.. its cpi inflation that we have to incur in.our day to day life... though lowering of WPI will bring down CPI, but CPI will always be there may be at 4-5%..

But that means more money in the hands of small traders and poor people. It is once again an achievement of Target in direction of empowering common man.

 

[The Great One]

Ofcourse.

Prove otherwise if you can.

With whatever little experience I've had with bhakts on the news boards so far,
Bhakts have zero clue about the subject apart from what they have read in some Op-ed or heard from other Bhakts
Bhakts have zero clue of what they themselves write and often try to potray a form of intellectual-learnedness by throwing in words like 'fundamentals', 'macro-economic variables' (not micro you fool) and so on
Bhakts also carry a huge thank-army to aid in winning arguments
Bhakts always win every argument (by throwing in the last word, no matter what happen to their original points)

So please spare my transgression, for I am incapable of proving anything to you.

 

[Jungibaaz]

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