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Poverty and the Economy July 2013
As expected, after two consecutive months of deflation,
the urban “headline” price index increased in June by
1.03%, in large part due to the fuel subsidy reduction.
The resulting increase in the cost of transportation directly contributed more than half (0.57) to the rate of
inflation. The uncertainty caused by the long process of
deciding on fuel price increases resulted in some increased prices even before the fuel subsidy reduction
was announced (on June 22, 2013). Expected increases
in transport costs and increases in world food prices
were among the factors in the inflation of food prices
(1.17%) and processed food prices (0.67%).
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