Prices

Inflationary pressures remained strong in the economy during the first five months
of FY09. In particular, consumer price index (CPI) and the sensitive price
indicator (SPI) have seen strong YoY increases in the period. However after
recording strong growth (YoY) during the first two months of FY09, a significant
decline in WPI inflation has been observed during the later months.
Core inflation, measured by both non-food non-energy (NFNE) and 20% trimmed
mean, strengthened during the first five months of FY09. Strength in core
inflation is indicating the persistence of inflationary pressures.