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EM inflation to pick up as oil price effect fades

EM inflation is set to accelerate in the months ahead as downward pressure from thefall in oil prices late last year unwinds. This will ease concerns about deflation in anumber of EMs, including China. It will also bring an end to monetary policyloosening in many economies, but with underlying price pressures relatively subduedit will be some time before most EM central banks think about tightening policy.

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