Montek brushes aside fears of deflationary phase in economy

Planning Commission Deputy Chairman Montek Singh Ahluwalia on Thursday allayed fears of the country sliding into a deflationary phase and termed the current low level of inflation as good for the economy.

The annual inflation rate in India has touched to ever lowest to 0.44 per cent. The deflation like situation would be there in the nation if the fall in the inflation continues for six months.

The fall of inflation from double digit to zero level was what big concern for the economy. The anti-inflationary measures by the RBI and the central fiscal policies curbed the high inflation rate. However, the retail price index was not down as the wholesale price index.