India’s Goldilocks economy isn’t serving everybody well—deflation has left rural parts in distress
Last month, the Reserve Bank of India’s (RBI) governor characterized the Indian economy as being in a “Goldilocks phase,” implying a fortuitous period of low inflation and high growth. Factually, he was correct. India’s GDP estimate for the quarter ended in September, at 8.2%, exceeded expectations, while retail inflation measured by the consumer price index (CPI) was just 0.25%, with its rural element posting a 0.25% decline in prices.
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