Inflation is down to 0.13% as per the figures released today and having been sub 1% now for several weeks. One wonders whether this is an indication of an economy on the path to recovery! With food prices largely remaining high or going higher, the low inflation figures indicate a lack of buying interest in commodities and consumer goods. A pointer also to low industrial activity. Surely that does not point to a recovering economy! This despite stimulus packages announced by the previous (?) govt. and expectations of more stimuli in the coming budget.
Seems economic activity remains slow. Now to wait for IIP nos to see whether they support my contention or not. Time also seems ripe for a stock market correction, which could come sooner rather later.
