Decline in inflation in India- Budget & Economic Survey

Q.  The recent structural shifts in the inflationary process in India causing a decline in inflation are caused by

1) Lower Crude oil prices
2) Decreasing Agriculture prices and wages
3) Reduced Inflation Expectations
4) Reduced Current Account Deficit

- Published on 06 Aug 15

a. 1, 2 and 3
b. All of the above
c. 1, 2 and 4 only
d. 1, 2 and 3 only

ANSWER: 1, 2 and 3
Structural shifts in the inflationary process are underway caused by lower oil prices, deceleration in agriculture prices and wages and inflationary expectations. These all have lead to a remarkable decline in inflation in just few months.

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