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The increase in the rate of VAT to 20 per cent, coupled with a surge in the price of crude oil, led inflation to increase again in January 2011, as prices rose higher and faster than economists had predicted. The Retail Prices Index (RPI) rose to 5.1 per cent in January, up from 4.8 per cent in December 2010. The Consumer Prices Index (CPI) rose to 4.0 per cent, up from 3.7 per cent the previous month. More

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