Inflation slips to 0.27 %

The rate of inflation has dropped further to 0.27 per cent for the week ended March 14 from 0.44 per cent in the previous week.

The inflation rate is seen at the zero level but there is no respite to the common people. The wholesale price index (WPI) has dropped by 17 basis points. The slide from high inflation rate to zero would be a concern for Indian economy.

The fall in the inflation may be due the fall in the international crude price and lack of proper demand for the goods and services. There is impact of the global slowdown on the economy and household economy.

RBI Governor D. Subbarao commenting on the WPI date said to media that while the decline to 0.27 per cent in the second week of March was a positive feature, there should not be any fear of the economy slipping into deep deflationary cycle.