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Poverty and the Economy May 2013
The Headline CPI for April 2013 compared to March showed deflation of -0.1%. It partially corrected for the unusually high inflation of 0.6% in March 2013. However, the more meaningful year-on-year inflation for April was a fairly high, 5.6% higher than 2012 (4.5%) but lower than 2011 (6.2%). The government inflation target of 4.9% in 2013 will be difficult to achieve because year-to-date inflation in the four months of 2013 already reached 2.3%. The decline in the CPI in April was largely due to deflation in food (-0.8%) and clothing (-1.1%) prices. The prices of garlic and chilies dropped in April, after they had shot up the month before, while the price of onion and fruits (especially imported fruits) continued to rise.
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