The Hindu Editorial • May 15, 2026 • Read Original

Bursting at the seams: On the rise in inflation

The current rise in inflation is not transient, but systemic

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Analysis of editorial from The Hindu newspaper on May 15, 2026

Bursting at the seams: On the rise in inflation

The current rise in inflation is not transient, but systemic

Retail InflationWholesale Price IndexMonetary PolicyFuel PricesRBIRupee Depreciation

Sentences

Sentence 1 of 18

English Original

Simple Present S + V + C + V + C

India’s April retail inflation, at a 13-month high of 3.48%, is only marginally higher than its March print of 3.4%, and continues to remain deceptively benign.

Sentence Breakdown

Part 1

India’s April retail inflation, at a 13-month high of 3.48%,

The price increase for items bought by regular people in April, which is the highest in over a year.

Part 2

Currently exists as.

Part 3

only marginally higher than its March print of 3.4%

Just a little bit more than the 3.4% recorded in March.

Part 4

continues to remain

Still stays in the same condition.

Part 5

deceptively benign

Appearing to be harmless or low, but actually hiding future risks.

Context and Background

Retail Inflation and RBI Targets

Retail inflation is measured by the Consumer Price Index (CPI). The Reserve Bank of India (RBI) aims to keep this inflation at 4% with a tolerance band of 2% to 6%. At 3.48%, the current inflation is well within this limit, which is why it might seem ‘benign’ (harmless).

Sentence 2 of 18

English Original

Present Perfect S + V + Adjunct + Adjunct + Adjunct

Wholesale inflation has more than doubled to 8.3% in April from 3.88% in March (a 42-month high) signalling that substantial upstream price pressures are still working their way through the economy.

Sentence Breakdown

Part 1

Wholesale inflation

The rate of price increase for goods at the wholesale or producer level.

Part 2

has more than doubled

Has increased by more than twice its previous amount.

Part 3

to 8.3% in April from 3.88% in March

Going up from nearly 4% to over 8% within one month.

Part 4

a 42-month high

The highest level seen in three-and-a-half years.

Part 5

signalling that substantial upstream price pressures are still working their way through the economy

Showing that high costs for producers are currently spreading throughout the business system.

Context and Background

WPI vs CPI Divergence

The Wholesale Price Index (WPI) measures prices at the level where goods are traded in bulk between businesses. When WPI rises much faster than the Consumer Price Index (CPI), it suggests that producers are facing high costs that they have not yet fully passed on to consumers. Eventually, these ‘upstream’ costs usually lead to higher retail prices.

Sentence 3 of 18

English Original

Present Perfect Passive Adjunct + S + V + Adjunct + Adjunct + Adjunct

Unsurprisingly, the spike in the Wholesale Price Index (WPI) has been led by soaring fuel and power prices, which rose 24.71%, while petroleum and natural gas prices surged 67.2%.

Sentence Breakdown

Part 1

Unsurprisingly

As expected or as everyone thought.

Part 2

the spike in the Wholesale Price Index (WPI)

The sudden and large increase in wholesale prices.

Part 3

has been led

Was caused mainly by.

Part 4

by soaring fuel and power prices

By the very high prices of fuel (like petrol/diesel) and electricity.

Part 5

which rose 24.71%

Referring to the 24.71% increase in fuel and power prices.

Part 6

while petroleum and natural gas prices surged 67.2%

At the same time, the costs for oil and gas went up by a massive 67.2%.

Context and Background

Components of WPI

The Wholesale Price Index (WPI) tracks prices across three main categories: Primary Articles, Fuel and Power, and Manufactured Products. Fuel and Power is a critical component because it affects the cost of production and transportation for almost all other goods. A 67.2% surge in petroleum prices is exceptionally high and indicates severe global supply disruptions.

Sentence 4 of 18

English Original

Simple Present S + Adjunct + V + O

This clearly indicates that the full impact of rising energy costs has not yet been passed on to end-consumers.

Sentence Breakdown

Part 1

This

The situation mentioned in the previous sentence (high wholesale fuel prices).

Part 2

clearly

In a way that is easy to see or understand.

Part 3

indicates

Shows or points out something.

Part 4

that the full impact of rising energy costs has not yet been passed on to end-consumers

The fact that regular people are not yet paying the full high price of oil and gas because companies are currently absorbing those costs.

Sentence 5 of 18

English Original

Simple Present Adjunct + S + Adjunct + V + C

However, such a pass-through now appears imminent.

Sentence Breakdown

Part 1

However

But, or on the other hand.

Part 2

such a pass-through

The act of moving high wholesale costs to retail prices for customers.

Part 3

now

At the present time.

Part 4

appears

Seems or looks like.

Part 5

imminent

Likely to happen very soon.

Sentence 6 of 18

English Original

Simple Past S + Adjunct + V + O + Adjunct

Union Petroleum Minister Hardeep Singh Puri recently indicated that the Centre may have little choice but to raise retail petrol and diesel prices, with public sector oil marketing companies reportedly absorbing “under-recoveries” of nearly ₹30,000 crore a month since the U.S.-Israeli war with Iran began.

Sentence Breakdown

Part 1

Union Petroleum Minister Hardeep Singh Puri

The government official in charge of India’s oil and gas sector.

Part 2

recently

A short time ago.

Part 3

indicated

Pointed out or gave a sign of what might happen.

Part 4

that the Centre may have little choice but to raise retail petrol and diesel prices

That the Indian government is likely forced to increase fuel prices for the public because there are no other options.

Part 5

with public sector oil marketing companies reportedly absorbing “under-recoveries” of nearly ₹30,000 crore a month since the U.S.-Israeli war with Iran began

Because government-owned oil companies are losing about 30,000 crore rupees every month as they pay high global prices but sell at lower prices in India during the war.

Context and Background

Oil Marketing Companies (OMCs) and Under-recoveries

In India, companies like IOCL, BPCL, and HPCL are known as Oil Marketing Companies. When global crude oil prices rise, these companies often face ‘under-recoveries’, the losses incurred by selling fuel at government-regulated rates that are lower than their actual purchase costs. If these losses become too large (like ₹30,000 crore/month), a price hike for consumers becomes necessary.

Sentence 7 of 18

English Original

Simple Future S + V + O

Any increase in retail fuel prices will have economy-wide implications.

Sentence Breakdown

Part 1

Any increase in retail fuel prices

Even a small rise in the price people pay for petrol and diesel.

Part 2

will have

Will result in or cause.

Part 3

economy-wide implications

Effects that spread across all sectors of the country’s economy.

Sentence 8 of 18

English Original

Present Perfect Passive S + V + Adjunct + Adjunct

April retail inflation has already been driven chiefly by food, with the Consumer Food Price Index rising to 4.2% from 3.87% in March.

Sentence Breakdown

Part 1

April retail inflation

The overall price rise for consumers in the month of April.

Part 2

has already been driven

Has been caused or influenced by.

Part 3

chiefly by food

Mainly because of the increasing prices of food items.

Part 4

with the Consumer Food Price Index rising to 4.2% from 3.87% in March

As the specific index that tracks food prices went up from 3.87% to 4.2% in one month.

Context and Background

Food

In India’s Consumer Price Index (CPI), food and beverages carry a very high weight of approximately 45.86%. This means that even a small increase in food prices has a major impact on the overall retail inflation rate. A rise to 4.2% in the food index is a significant contributor to the total inflation reaching 3.48%.

Sentence 9 of 18

English Original

Simple Past Adjunct + S + V + O + Adjunct

Predictably, restaurants and accommodation services witnessed among the sharper increases, reflecting the cascading effect of rising commercial LPG prices.

Sentence Breakdown

Part 1

Predictably

In a way that was expected or not surprising.

Part 2

restaurants and accommodation services

Businesses that provide food and places to stay (hotels).

Part 3

witnessed

Experienced or showed.

Part 4

among the sharper increases

Some of the highest price rises compared to other areas.

Part 5

reflecting the cascading effect of rising commercial LPG prices

Showing how high gas prices for businesses lead to higher costs for customers eventually.

Sentence 10 of 18

English Original

Present Perfect S + V + Adjunct + Adjunct

The price of the widely used 19.2 kg commercial LPG cylinder has risen by roughly ₹850-₹1,000 over revisions since the conflict began, while the 5 kg canister has reportedly seen increases of over ₹200 in several markets.

Sentence Breakdown

Part 1

The price of the widely used 19.2 kg commercial LPG cylinder

The cost of the standard large gas tank used by hotels and businesses.

Part 2

has risen

Has gone up.

Part 3

by roughly ₹850-₹1,000 over revisions since the conflict began

Increased by about 850 to 1,000 rupees through several small price changes since the war started.

Part 4

while the 5 kg canister has reportedly seen increases of over ₹200 in several markets

At the same time, the smaller 5kg gas tank has also become more expensive by over 200 rupees in many places.

Sentence 11 of 18

English Original

Simple Present Passive S + V + Adjunct + Adjunct

The canister is extensively used by migrant wage labour across the country, directly feeding into food basket costs and potentially dampening consumption demand.

Sentence Breakdown

Part 1

The canister

The small 5kg gas tank mentioned previously.

Part 2

is extensively used

Is used by a large number of people in many places.

Part 3

by migrant wage labour across the country

By workers who travel from one state to another for daily-wage jobs.

Part 4

directly feeding into food basket costs and potentially dampening consumption demand

Increasing the daily cost of food for poor people and possibly making them spend less on other things.

Context and Background

Impact on Migrant Labour

Migrant workers in India often live in rented accommodations without permanent address proof, making it difficult to get standard 14.2kg domestic LPG connections. They rely on 5kg cylinders which are easier to get. When these prices rise, it hits the poorest section of workers, forcing them to spend more on cooking and less on other essentials.

Sentence 12 of 18

English Original

Simple Present S + V + Adjunct

This comes even as Prime Minister Narendra Modi has appealed to people to refrain from “extravagant spending on weddings and travel abroad” and to cut back on buying precious metals for a year.

Sentence Breakdown

Part 1

This

The situation of rising prices and inflation.

Part 2

comes

Happens or occurs at the same time.

Part 3

even as Prime Minister Narendra Modi has appealed to people to refrain from “extravagant spending on weddings and travel abroad” and to cut back on buying precious metals for a year

At the same time as the Prime Minister is asking citizens to stop spending too much on big weddings and foreign trips, and to buy less gold and silver for the next year.

Context and Background

The Prime Minister’s appeal for ‘austerity’ (cutting down on spending) aims to reduce the demand for imports like gold and silver. India imports a large amount of gold, which requires spending foreign currency (U.S. Dollars). By reducing gold purchases and foreign travel, the government hopes to save dollars and protect the value of the Indian Rupee.

Sentence 13 of 18

English Original

Simple Past Adjunct + S + V + O + Adjunct

Consequently, the Centre doubled import duties on gold and silver in an attempt to discourage safe-haven investments and ease pressure on the rupee, which has depreciated by nearly 8.5% against the U.S. dollar in the past two-and-a-half months since the conflict began.

Sentence Breakdown

Part 1

Consequently

As a result of what happened before.

Part 2

the Centre

The central government of India.

Part 3

doubled

Increased by two times the original amount.

Part 4

import duties on gold and silver

Taxes that must be paid when bringing gold and silver into the country.

Part 5

in an attempt to discourage safe-haven investments and ease pressure on the rupee, which has depreciated by nearly 8.5% against the U.S. dollar in the past two-and-a-half months since the conflict began

Trying to stop people from buying gold just to keep their money safe, and trying to help the rupee which has lost 8.5% of its value because of the war.

Context and Background

Rupee Depreciation and Gold Duties

When a currency like the Rupee ‘depreciates’, it means it takes more Rupees to buy one U.S. Dollar. This makes imports more expensive. By doubling import duties on gold, the government makes gold very expensive to buy, which reduces demand. Lower demand for gold means fewer dollars are needed to pay for it, which helps stabilize the Rupee’s value.

Sentence 14 of 18

English Original

Past Perfect Adjunct + S + V + Adjunct

For context, the rupee had depreciated by roughly 2%-3% annually on average over the previous five fiscal years.

Sentence Breakdown

Part 1

For context

To provide background information for comparison.

Part 2

the rupee

The Indian currency.

Part 3

had depreciated

Had lost value in the past.

Part 4

by roughly 2%-3% annually on average over the previous five fiscal years

Normally, the rupee used to lose only 2% to 3% of its value each year over the last five years.

Sentence 15 of 18

English Original

Simple Present S + V + Adjunct + C

The current slide is therefore exceptionally sharp.

Sentence Breakdown

Part 1

The current slide

The ongoing drop in the value of the Indian rupee.

Part 2

Currently exists as.

Part 3

therefore

For that reason; consequently.

Part 4

exceptionally sharp

Much faster and more extreme than what is normal.

Sentence 16 of 18

English Original

Simple Present S + V + C + O

It is increasingly evident that retail inflation is bursting at the seams and will likely find fuller expression in the months ahead.

Sentence Breakdown

Part 1

A dummy subject referring to the fact that follows.

Part 2

Exists as.

Part 3

increasingly evident

Becoming clearer and more obvious as time passes.

Part 4

that retail inflation is bursting at the seams and will likely find fuller expression in the months ahead

The fact that price rises for people are getting out of control and will probably get much worse in the near future.

Sentence 17 of 18

English Original

Simple Present S + V + O + Adjunct

The sharp divergence between the Consumer Price Index and WPI suggests that producers are still absorbing a significant share of rising costs, a situation that is unlikely to remain sustainable.

Sentence Breakdown

Part 1

The sharp divergence between the Consumer Price Index and WPI

The big difference between the low retail prices and the very high wholesale prices.

Part 2

suggests

Indicates or points to a likely fact.

Part 3

that producers are still absorbing a significant share of rising costs

The fact that factory owners and companies are paying the extra costs themselves instead of making customers pay for now.

Part 4

a situation that is unlikely to remain sustainable

A condition that cannot continue for long because it will cause losses or business failure.

Sentence 18 of 18

English Original

Simple Present S + V + O + Adjunct

This leaves the Reserve Bank of India with limited room but to eventually tighten monetary policy in order to keep inflation within its tolerance band of 2%-6%.

Sentence Breakdown

Part 1

This

The situation where prices are rising but companies can no longer afford to absorb costs.

Part 2

leaves

Puts someone in a certain position or state.

Part 3

the Reserve Bank of India

India’s central bank, which controls the money supply and interest rates.

Part 4

with limited room but to eventually tighten monetary policy in order to keep inflation within its tolerance band of 2%-6%

With almost no other choice but to increase interest rates so that price rises stay between 2% and 6%.

Context and Background

RBI

The MPC of the RBI meets regularly to decide on interest rates (like the Repo Rate). Their primary goal is to maintain price stability while supporting growth. The ‘2%-6% band’ is their legal mandate. When inflation threatens to stay above this level, they ‘tighten’ policy by raising rates to make borrowing expensive and reduce spending.

Sentence 1 of 18

India’s April retail inflation, at a 13-month high of 3.48%, is only marginally higher than its March print of 3.4%, and continues to remain deceptively benign.

Sentence Breakdown

Part 1

India’s April retail inflation, at a 13-month high of 3.48%,

The price increase for items bought by regular people in April, which is the highest in over a year.

Part 2

Currently exists as.

Part 3

only marginally higher than its March print of 3.4%

Just a little bit more than the 3.4% recorded in March.

Part 4

continues to remain

Still stays in the same condition.

Part 5

deceptively benign

Appearing to be harmless or low, but actually hiding future risks.

Sentence 2 of 18

Wholesale inflation has more than doubled to 8.3% in April from 3.88% in March (a 42-month high) signalling that substantial upstream price pressures are still working their way through the economy.

Sentence Breakdown

Part 1

Wholesale inflation

The rate of price increase for goods at the wholesale or producer level.

Part 2

has more than doubled

Has increased by more than twice its previous amount.

Part 3

to 8.3% in April from 3.88% in March

Going up from nearly 4% to over 8% within one month.

Part 4

a 42-month high

The highest level seen in three-and-a-half years.

Part 5

signalling that substantial upstream price pressures are still working their way through the economy

Showing that high costs for producers are currently spreading throughout the business system.

Sentence 3 of 18

Unsurprisingly, the spike in the Wholesale Price Index (WPI) has been led by soaring fuel and power prices, which rose 24.71%, while petroleum and natural gas prices surged 67.2%.

Sentence Breakdown

Part 1

Unsurprisingly

As expected or as everyone thought.

Part 2

the spike in the Wholesale Price Index (WPI)

The sudden and large increase in wholesale prices.

Part 3

has been led

Was caused mainly by.

Part 4

by soaring fuel and power prices

By the very high prices of fuel (like petrol/diesel) and electricity.

Part 5

which rose 24.71%

Referring to the 24.71% increase in fuel and power prices.

Part 6

while petroleum and natural gas prices surged 67.2%

At the same time, the costs for oil and gas went up by a massive 67.2%.

Sentence 4 of 18

This clearly indicates that the full impact of rising energy costs has not yet been passed on to end-consumers.

Sentence Breakdown

Part 1

This

The situation mentioned in the previous sentence (high wholesale fuel prices).

Part 2

clearly

In a way that is easy to see or understand.

Part 3

indicates

Shows or points out something.

Part 4

that the full impact of rising energy costs has not yet been passed on to end-consumers

The fact that regular people are not yet paying the full high price of oil and gas because companies are currently absorbing those costs.

Sentence 5 of 18

However, such a pass-through now appears imminent.

Sentence Breakdown

Part 1

However

But, or on the other hand.

Part 2

such a pass-through

The act of moving high wholesale costs to retail prices for customers.

Part 3

now

At the present time.

Part 4

appears

Seems or looks like.

Part 5

imminent

Likely to happen very soon.

Sentence 6 of 18

Sentence Breakdown

Part 1

Union Petroleum Minister Hardeep Singh Puri

The government official in charge of India’s oil and gas sector.

Part 2

recently

A short time ago.

Part 3

indicated

Pointed out or gave a sign of what might happen.

Part 4

that the Centre may have little choice but to raise retail petrol and diesel prices

That the Indian government is likely forced to increase fuel prices for the public because there are no other options.

Part 5

with public sector oil marketing companies reportedly absorbing “under-recoveries” of nearly ₹30,000 crore a month since the U.S.-Israeli war with Iran began

Because government-owned oil companies are losing about 30,000 crore rupees every month as they pay high global prices but sell at lower prices in India during the war.

Sentence 7 of 18

Any increase in retail fuel prices will have economy-wide implications.

Sentence Breakdown

Part 1

Any increase in retail fuel prices

Even a small rise in the price people pay for petrol and diesel.

Part 2

will have

Will result in or cause.

Part 3

economy-wide implications

Effects that spread across all sectors of the country’s economy.

Sentence 8 of 18

April retail inflation has already been driven chiefly by food, with the Consumer Food Price Index rising to 4.2% from 3.87% in March.

Sentence Breakdown

Part 1

April retail inflation

The overall price rise for consumers in the month of April.

Part 2

has already been driven

Has been caused or influenced by.

Part 3

chiefly by food

Mainly because of the increasing prices of food items.

Part 4

with the Consumer Food Price Index rising to 4.2% from 3.87% in March

As the specific index that tracks food prices went up from 3.87% to 4.2% in one month.

Sentence 9 of 18

Predictably, restaurants and accommodation services witnessed among the sharper increases, reflecting the cascading effect of rising commercial LPG prices.

Sentence Breakdown

Part 1

Predictably

In a way that was expected or not surprising.

Part 2

restaurants and accommodation services

Businesses that provide food and places to stay (hotels).

Part 3

witnessed

Experienced or showed.

Part 4

among the sharper increases

Some of the highest price rises compared to other areas.

Part 5

reflecting the cascading effect of rising commercial LPG prices

Showing how high gas prices for businesses lead to higher costs for customers eventually.

Sentence 10 of 18

Sentence Breakdown

Part 1

The price of the widely used 19.2 kg commercial LPG cylinder

The cost of the standard large gas tank used by hotels and businesses.

Part 2

has risen

Has gone up.

Part 3

by roughly ₹850-₹1,000 over revisions since the conflict began

Increased by about 850 to 1,000 rupees through several small price changes since the war started.

Part 4

while the 5 kg canister has reportedly seen increases of over ₹200 in several markets

At the same time, the smaller 5kg gas tank has also become more expensive by over 200 rupees in many places.

Sentence 11 of 18

The canister is extensively used by migrant wage labour across the country, directly feeding into food basket costs and potentially dampening consumption demand.

Sentence Breakdown

Part 1

The canister

The small 5kg gas tank mentioned previously.

Part 2

is extensively used

Is used by a large number of people in many places.

Part 3

by migrant wage labour across the country

By workers who travel from one state to another for daily-wage jobs.

Part 4

directly feeding into food basket costs and potentially dampening consumption demand

Increasing the daily cost of food for poor people and possibly making them spend less on other things.

Sentence 12 of 18

This comes even as Prime Minister Narendra Modi has appealed to people to refrain from “extravagant spending on weddings and travel abroad” and to cut back on buying precious metals for a year.

Sentence Breakdown

Part 1

This

The situation of rising prices and inflation.

Part 2

comes

Happens or occurs at the same time.

Part 3

even as Prime Minister Narendra Modi has appealed to people to refrain from “extravagant spending on weddings and travel abroad” and to cut back on buying precious metals for a year

At the same time as the Prime Minister is asking citizens to stop spending too much on big weddings and foreign trips, and to buy less gold and silver for the next year.

Sentence 13 of 18

Sentence Breakdown

Part 1

Consequently

As a result of what happened before.

Part 2

the Centre

The central government of India.

Part 3

doubled

Increased by two times the original amount.

Part 4

import duties on gold and silver

Taxes that must be paid when bringing gold and silver into the country.

Part 5

Trying to stop people from buying gold just to keep their money safe, and trying to help the rupee which has lost 8.5% of its value because of the war.

Sentence 14 of 18

For context, the rupee had depreciated by roughly 2%-3% annually on average over the previous five fiscal years.

Sentence Breakdown

Part 1

For context

To provide background information for comparison.

Part 2

the rupee

The Indian currency.

Part 3

had depreciated

Had lost value in the past.

Part 4

by roughly 2%-3% annually on average over the previous five fiscal years

Normally, the rupee used to lose only 2% to 3% of its value each year over the last five years.

Sentence 15 of 18

The current slide is therefore exceptionally sharp.

Sentence Breakdown

Part 1

The current slide

The ongoing drop in the value of the Indian rupee.

Part 2

Currently exists as.

Part 3

therefore

For that reason; consequently.

Part 4

exceptionally sharp

Much faster and more extreme than what is normal.

Sentence 16 of 18

It is increasingly evident that retail inflation is bursting at the seams and will likely find fuller expression in the months ahead.

Sentence Breakdown

Part 1

A dummy subject referring to the fact that follows.

Part 2

Exists as.

Part 3

increasingly evident

Becoming clearer and more obvious as time passes.

Part 4

that retail inflation is bursting at the seams and will likely find fuller expression in the months ahead

The fact that price rises for people are getting out of control and will probably get much worse in the near future.

Sentence 17 of 18

The sharp divergence between the Consumer Price Index and WPI suggests that producers are still absorbing a significant share of rising costs, a situation that is unlikely to remain sustainable.

Sentence Breakdown

Part 1

The sharp divergence between the Consumer Price Index and WPI

The big difference between the low retail prices and the very high wholesale prices.

Part 2

suggests

Indicates or points to a likely fact.

Part 3

that producers are still absorbing a significant share of rising costs

The fact that factory owners and companies are paying the extra costs themselves instead of making customers pay for now.

Part 4

a situation that is unlikely to remain sustainable

A condition that cannot continue for long because it will cause losses or business failure.

Sentence 18 of 18

This leaves the Reserve Bank of India with limited room but to eventually tighten monetary policy in order to keep inflation within its tolerance band of 2%-6%.

Sentence Breakdown

Part 1

This

The situation where prices are rising but companies can no longer afford to absorb costs.

Part 2

leaves

Puts someone in a certain position or state.

Part 3

the Reserve Bank of India

India’s central bank, which controls the money supply and interest rates.

Part 4

with limited room but to eventually tighten monetary policy in order to keep inflation within its tolerance band of 2%-6%

With almost no other choice but to increase interest rates so that price rises stay between 2% and 6%.

Reading Comprehension

Practice questions based on this editorial

Reading Comprehension - Inflation Rise

Practice reading comprehension questions based on the editorial about India's rising inflation and the divergence between retail and wholesale indices.

5 Questions Passing: 70%

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Bursting at the seams: On the rise in inflation

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Reading Comprehension - Inflation Rise

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