General Trading Chat

Riskyman

Well-Known Member
inflation negative means ?
WPI coming down month on month means what??? prices are falling. This happens when either demand falls or when supply increases. Assuming supply in the short term cannot be altered, it would be fair to say that price is coming down due to lack of demand/purchasing power which will reflect in the economy slowing down.
 

rahulmalik

You only lose what you cling to.
WPI coming down month on month means what??? prices are falling. This happens when either demand falls or when supply increases. Assuming supply in the short term cannot be altered, it would be fair to say that price is coming down due to lack of demand/purchasing power which will reflect in the economy slowing down.
Fundamentally correct. However, if we add falling fuel prices - this also has a major contribution to falling inflation.
 

Dax Devil

Well-Known Member
WPI coming down month on month means what??? prices are falling. This happens when either demand falls or when supply increases. Assuming supply in the short term cannot be altered, it would be fair to say that price is coming down due to lack of demand/purchasing power which will reflect in the economy slowing down.
Purchasing power is independent of demand in normal circumstances. Only during recession they are instep.
 

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