New Delhi, July 10 -- The coronavirus-led demand slump has pushed the global economy into recessionary mode. Excess spare capacity is keeping inflation muted, until the world fully reopens. Of course, demand has also fallen across the board, resulting in lower inflation.
Average inflation in advanced economies dropped about 1.3 percentage points since the end of 2019, to 0.4% (year-over-year) as of April 2020, the International Monetary Fund (IMF) said in its latest economic outlook report. In emerging market economies, inflation fell 1.2 percentage points to 4.2%, the report said. "Inflation projections have generally been revised downward, with larger cuts typically in 2020 and for advanced economies.
This generally reflects a combinati...