Inflation Index has touched 0.27% which is an all time low from the past thirty years. It is continuing its downward trend towards negative. After crossing the alarming rates of the 7% last year at about the same time, the inflation’s downward trend towards negative in this year has been yet another alarming trend.

Inflation, which is projected to reach negative in early April to early May, is expected not to follow a fall back soon out of the ‘deflation phase‘, according to the economists and policy makers. According to Ashok Chawla, secretary, department of economic affairs, This fall in inflation is not because of lack of effective demand, but due to the base effect.

Mr.Montek Singh and Duvvuri Subba Rao too has assured of quick recovery from this situation and not very significant effect of this on the economic growth.