Sunday, July 5, 2009

Deflation- Prices must be going down.......

India facing a negative inflation for three consecutive weeks. But we cant see any decrease in commodity prices. Why so??

The reason is very simple : Last year we saw inflation rising at high rates and this year the base effect has led to Deflationary figures.

And of course the slackening of demand has effected the same.

What does this mean for future ??

It means we will see high inflation figures next year due to the base effect again and re-vitalisation of demand affects....

No comments:

Post a Comment