Overall inflation has fallen, benefits not equal: HSBC report

Q.  According to an HSBC report released on 22nd October 2015, rural India is facing _____________ across major categories such as fuel,core and food.
- Published on 23 Oct 15

a. Disinflation
b. Excess Inflation
c. Rural Inflation
d. None of the above

ANSWER: Excess Inflation
 
Regardless of the fact that overall inflation has fallen considerably in past few months, the benefits will not be distributed equally with rate of price rise higher in rural as compared to urban areas. Rural inflation has not fallen as much as urban inflation. Excess inflation rural India is facing is across major sub categories such as core, food and fuel. Structural bottlenecks are preventing rural areas from benefiting from global disinflation, according to the report.

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