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You are given the following information: Spot rate : Rs. 57.78/ 6-month forward rate : Rs. 58.37/ The inflation rate in India is 5.00%, calculate

You are given the following information:

Spot rate : Rs. 57.78/

6-month forward rate : Rs. 58.37/

The inflation rate in India is 5.00%, calculate the inflation rate in the Euro Zone assuming that the PPP holds good even for the short run.

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