Consumer price inflation stood at 13% year on year in April-the 40th consecutive month, with one exception, in which prices have risen at double-digit rates. Inflation will remain elevated in the coming months, as the floods destroyed an estimated 10-15% of farmland as well as grain-storage facilities, thereby generating supply-side pressures. More broadly, upward inflationary pressures abound: they include high international commodity prices, the fuel price rise announced in March, and the widening fiscal deficit, which has led to a resurgence in government borrowing from the central bank. However, the government's postponement of the introduction of the RGST will temper inflationary pressures to a degree. We forecast consumer price inflation at 12.5% in 2011, down from 13.9% in 2010. Inflation should then moderate, to average 7.1% in 2012-15.