Is Deflation a problem?
Inflation was a problem which we have been hearing normally over the years, and we are too new to Deflation. Is deflation a problem? You might have heard that India’s inflation figures has dropped to a negative 1.61%. We all are aware what Inflation means so normally deflation would just make the opposite of Inflation.
India witnessed the last deflation 33 years ago,(any ways I was not here to witness that) As for a normal person when we hear that its deflation it would mean that the prices have come down, but if we go to the market to find out the truth we can see that its still the same and has not made an difference, then what does this deflation figures actually mean. Don’t be confused over that in India the inflation rate is calculated on an year on year (YOY) basis on the whole sale price index.