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The gap between input and output prices has widened as companies are not in a position to pass on the higher costs because of muted demand.
The rise in global prices of Brent crude, edible oil and precious metals has led to an increase in the contribution of imported components to headline inflation.
Moreover, the retail price margin—the difference between retail and wholesale prices—for cereals, edible oil and pulses remains high, while that of vegetables has softened.
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