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Poverty and the Economy June 2013
In May consumer prices fell for the second month in a row, with the headline CPI declining by -0.03% compared to April. Inflation had been unusually high in the first four months of 2013 only slightly compensated by the April-May decline. Therefore the year-on-year inflation for May was a high 5.5%, slightly lower than the 5.6% in April. The government revised its inflation target for 2013 from 4.9% to 7.2% the new inflation target is reasonable, particularly given the increase in fuel prices that was implemented in mid-June. The decline in the May CPI, as in April 2013, was caused by declines in food and clothing, this month by -0.83% and -1.22% respectively. Prices of onions, garlic and vegetables declined significantly as a correction to unusually high prices in previous months
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