Inflation lower... what does that mean for us?

In the early 2000s, USA had a CPI (read, inflation rate) of around 4% and its economy was considered healthy. Now India is having a CPI of 4.8%.

Good or bad? Ask the politicians... you will get diametrically different answers.

Good or bad? Economists will say bad...

As falling CPI indicates lesser growth in price rise... largely led by lesser purchasing capacity by consumers (of course, can also be caused by supply excess, but in such case Industrial production rate and growth rate has to be higher which is not so in India now)... which leads to lesser demand... which leads sub-optimal production... which leads to industrial/production inefficiency... which leads to losses... which leads to economic downfall... which may lead to deflation meaning shrinking economy (our wholesale price index is already in negative)

In 2008, when western economies went bust, US CPI went to negative. Since then US Federal Bank is trying hard to bring back inflation to about 4 percent at least, but it has failed in doing so till now.

The US economy had double digit inflation post world war II as well around 1980s. Both the period were golden period of growth for that country.

However, a comparision of India with US is not on even term. We should not forget that US is a 'developed' economy while ours is a 'developing economy'.

So, what is your idea about inflation?