inflation less than 4%

Inflation recorded has come down lesser than 4%. This is after a very long time that the inflation has come down so low. In fact the inflation rates had reached double figures at even stayed at that for a long time over the last one year. This is the precise reason that the inflation figures even if this is considered very low is not going to affect much.

There was a time when the inflation figures used to affect the stock market greatly and everyone used to wait for the inflation to be announced. This is not the case now.

Now, even if the inflation goes negative its going to have little impact. Only if it sustains negative levels over a few weeks will it have some impact on the stock market and economy.

However these figures are surely going to get some attention of RBI. Even though the government many not take any more significant actions, you can expect RBI to come up with some measures soon.