Both overheated and lacking heat

Abstract

Overall inflation will rise if the upward push from inflation adjustment exceeds the downward pull from a weak economy

On the day the finance minister presented the Budget in Parliament, it was also reported that GDP growth for October-December 2012 grew at 4.5%, its lowest in a decade. It is now likely that growth for the full fiscal year will come in around 5% or lower, way below the 9% growth that many felt had become the 'new normal'. At the same time, consumer price rise by most measures has been in double-digits for over a year, and in fact rose a lot last year while GDP growth fell. Read more at: http://archive.indianexpress.com/news/both-overheated-and-lacking-heat/1089458/