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Poverty and the Economy March 2013
Inflation accelerated somewhat in 2013 with the
“headline” inflation rate in February 2013 at 0.75%,
and year-on-year inflation of 5.3%. This was higher
than February 2012 (3.6%) but not unusually high
by historical standards: from 2007 to 2011 inflation
ranged from 2.8% to 11.1% annually. The largest
contributor to February inflation was food prices
which contributed more than half of the month’s
inflation (0.495% of 0.75%). Food price inflation did
not result from increases in the price of staple
foods, such as rice, but from a sharp increase in the
prices of such foods as garlic, red onions and chilies.
Their high domestic price was not caused by high
world prices. While there is some concern over
market manipulation, most observers believe that
the proximate cause of these price increases was
government restrictions on imports
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