[gingabriska]

Well inflation has to be at some healthy level.

Low inflation means there isn't much money in market chasing goods and services. It can happen if there is simply no demand for goods/services. So you don't see price for goods/services going up.

High inflation means too much money chasing limited goods, leading to price of goods and services soar.

Both are bad for the economy.

In a country like India, government expenditure drives economy. If government hoards all cash and sits atop it, sucking market dry - it's bad for economy but you can claim lower inflation only for sometime before the supply also adjusts to the current demand, shrinking the economy and then cycle continues, you end up with slower growth rate or growth reversed.

Look at growth rate, what do you see?

[firasd]

Thanks for the info. Yeah growth is definitely slowing down, quarter after quarter.