Is deflation a concern for India?

June reported a deflation or an inflation at -1.6%. Its the first time it turned negative since 1978. Is it a concern for the Indian economy?

India does not suffer from any demand constraint so there should be no concern about deflation.

Firstly, there are number of variables for setting up policies with respect to inflation - WPI (wholesale price inxed), CPI (consumer price index), GDP deflator, inflation expectations, seasonally adjusted inflation trends.

Even as WPI is negative there are still many primary articles, food articles where inflation is still significant. Oil prices would be firming up as well.