India since long has been facing tough times on the front of inflation but after the change of guard in New Delhi, inflation in Indian economy is on fall. The retail inflation was at 7.73 per cent in August and in Sept it had been declined to 6.46 per cent and vegetable inflation to 8.59 per cent. The overall food inflation that is measured by CPI had declined to 7.67 per cent in comparison to 9.35 per cent in the previous month and 11.75 per cent in September 2013.
This is good news for India as whole but for a common person even this level of inflation seems to be very high as she has to undergo a period of very high inflation for more than three years where prices of most food products has either doubled or tripled in some cases. But RBI is not expected to decrease interest rates even if the inflation in the economy is below its target of 8 per cent as RBI seems to be not very confident about the low inflation situations in economy. So it will continue an era of high rate of interest for longer period than expected.
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