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Low food inflation keeps EM inflation near eight-year low

Aggregate EM inflation remained close to an eight-year low in April, largely reflecting a slump in food inflation in major economies such as China and Brazil. While this weakness will soon reverse in both countries and push up EM food inflation, there are other forces that will cap the rise in overall inflation. The big picture is that inflation will not be a major concern for most EM central banks this year.

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