Deflationary trend continued for the 10th month in a row with inflation plunging to a historic low of (-)4.95 per cent in August on cheaper fuel and vegetables. In August 2014, inflation was 3.85 per cent.
Though it is true that we have seen an increase in prices of onions over last 2 months due to seasonal fluctuations and bad crop but overall the food basket inflation remained in negative territory for second month in a row at (-)1.13 per cent. For vegetables, it declined to (-)21.21 per cent, helped by potato at (-)51.71 per cent.
This is a Big relief for Middle Class which has witnessed month on month increase in pricing of essential goods since last 6-7 years.
We know that a continued deflation is not considered good but in India the case is difference because we were also facing artificial inflation due to bad policies of Government and also well planned hoarding of essential goods which was breaking the backbone of Middle Class Families!