MUMBAI: India’s economy has had low inflation for months now, and policymakers are feeling rather uncomfortable with this state. Policymakers are now realizing that prolonged low inflation is as dangerous as a long-drawn high inflation episode. More than eight quarters of low inflation would mean the consumption wheel, which powered the India economy, is slowing rather dramatically now. Policymakers are now realizing that prolonged low inflation is as dangerous as a long-drawn high inflation episode. More than eight quarters of low inflation would mean the consumption wheel, which powered the India economy, is slowing rather dramatically now.

Source: Mint May 14, 2019 16:52 UTC