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Inflation: Core inflation implies risks on the upside

By , ,

Consumer prices rose by 0.15% in July, incrementally lower than the market consensus and our call (0.2%). Annual headline fell to 9.8% thanks to food and favorable base impact on tobacco. Looking ahead, we expect the headline inflation to breach 10% in August and stay at 10-11% levels till December before it would sizably fall towards 9% at the end of the year.

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