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  • Category: Miscellaneous

    Negative inflation rate in two states.

    We all will be hearing about inflation rates in our country during the year. In the month of October this year, this inflation rate of India on an average is about 3.31% when compared to last year October. When we see the inflation rates of two States in India recorded a negative inflation rate this month. The State of Himachal Pradesh reported the lowest inflation rate that is -0.73%. Next comes Andhra Pradesh -1.07%. The highest inflation rate reported in Assam and it is about 6.03%. The inflation rate in Telangana is near the average of all the States and that is reported as 3.72%, What are the reasons for so much variation from one State to another State. I like to know the views of learned members.
  • #653411
    The inflation rate in negative is called deflation in economy concept. The condition of deflation is not good for the modern economy. Inflation and deflation may vary from country to country and state to state. It is directly related to the demand and supply of particular good and services. The variation of the rates depends on the market of that particular state. Its demand and supply of goods and services, the purchasing power of the people of that region and rates of the wages. This practice is done to ensure the balanced growth of the country. So that in large data any part of the country should not be ignored.
    Well done is better than well said

  • #653417
    The inflation rates in a particular area depend upon many factors like distance of their manufacturing facility from the raw material supplier, availability of agricultural products, demand and supply ratio in the market etc.

    As these factors vary from state to state the inflation rate will be different in different areas.

    Thoughts exchanged is knowledge gained.

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