With exchange rate flexibility and declining imports, net exports are expected to contribute to growth. Average inflation accelerated sharply from 3.8% in the first 8 months of FY2018 to 6.5% in the same period of FY2019, led by a surge in nonfood inflation to 9.1% that reflected currency depreciation and a significant increase in gas tariffs for consumers and industry in the first half. Food inflation remains relatively moderate at 2.6% thanks to sufficient stocks of food staples.
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