Inflation for the latest week came down to 2.43%. It is little better than I estimated below. But still if WPI number doesn't improve in the coming week then most likely inflation will dip below 0 by March end as I have calculated and shown earlier. Current level of inflation is lowest since June 2002. This is attributed to the record fall in the factory output.
Now I present the historical graph of Inflation in India since 1995.
The highlights of Inflation in India since 1995:
1) Lowest inflation was in February 2002, when inflation was at 1.13%.
2) Peak of 2000 can be attributed to the .com bubble when IT companies flooded India.
3) In February 2008, Inflation was at peak of 12.91%.
Please give suggestions, analysis, information if you have on this topic.
