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Wednesday, February 2, 2011

Inflation continues to rise!

Inflation, point-to-point, reached to 8.3% in December 2010, accelerating on food prices. Food inflation reached to 11.0%, highest during the present government that took power in January 2009. The food-nonfood inflation gap continues to widen as nonfood inflation keeps declining, slowed down to 3.3% from 7.0% in December 2009.

Two interesting points are that: 
(i) during the last couple of months, rural food inflation is considerably higher than urban food inflation, clearly indicates less concentration of the authority in rural market situation; 
(ii) average inflation became higher than the point-to-point inflation, indicating a continued level of higher inflation over the months. 

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