Inflation India: Lowest since last 33 years

Inflation in India for the week ended May 30, 2009 dropped to 0.13%, lowest since the government started recording such data in 1977-78.

According to Speculations, the next week thee Indian Economy may slip in to Deflation (Negative Inflation) for a shorter period of time.

There is a saying that, during the time of Deflation, IT IS BETTER TO BE A LENDER RATHER THAN BORROWER.

You can be a Lender by investing your money in Government Bonds, FDs, Corporate Bonds and Debt Category Mutual Funds which invest primarily in Government & Corporate Debt.

Remember, Real Return = Return Offered – Inflation – Tax.

So the Inflation at Ground Zero level means your Real Return from any Investment will be higher.

Prime Minister Manmohan Singh has however, countered the fears that pump priming of the economy by the recent stimulus package s and measures that will follow in the coming months would fuel Inflation.