Inflation - A natural outcome of growth?

Economists would have us believe that a mild inflation is desirable for a growing economy? Is it?

As technology improves, the productivity goes up and the cost should come down. Do we not see this in electronic goods? Computers, as an example, are faster and better yet cheaper. Is that not a natural outcome of economic progress? If that is so, why are prices of most other goods continuously rising?

Inflation figures negative!

Inflation figures are negative now. A first in the last 30 odd years. Time to do a detailed analysis.

Watch this space for a detailed analysis to follow soon.

Inflation down to 0.13% - Some economic recovery!

From what seems to be the expert opinion in the country, India's economy is gearing up to keep its growth rate high. The stock market movement would also suggest that the worst is over. But is it so?

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.