In July 2018, the annual inflation was 3.0%, with 0.2% less than in the previous month. Inflation is, for the third month, under the forecasted minimum variation limit of ± 1.5% from the 5.0% target, IPN reports.
According to a press release from the National Bank, the greatest contribution to the annual inflation rate, 2.2%, is due to prices on food products. Base inflation and fuel prices have had an impact of 1.1% and 0.7% respectively. Regulated prices have generated a negative contribution of -1.0%.
Monthly base inflation in July has risen by 0.2%. The greatest price increases have been in “culture and leisure,” following a 14.6% increase in prices for “foreign tourism” and a 3.2% increase in “cigarette” prices. Meanwhile, prices on “vehicles and trailers” have fallen by 1.3%, as the national currency has risen relative to the euro and US dollar.
The 1.9% decrease in food product prices, compared to June, was determined mainly by lower prices in fresh vegetables (-14.2%), potatoes (-13.0%), and fresh fruit (-6.9%). Concomitantly, prices have risen for eggs (1.8%), fish and canned fish (0.8%). Disregarding the seasonal factor, food product prices have risen by 0.8% relative to the previous month.
In July, fuel prices have fallen by 0.3% relative to the previous month. This trend was brought on by lower prices for gasoline and diesel, following global trends in the fuel market. Bottled gas prices have risen by 0.2%, and charcoal prices have fallen by 0.2%. Firewood and liquid fuel prices have remained unchanged from the previous month.
In the reference month, regulated service and product prices have fallen by 2.0% relative to the previous month. This trend was determined by a 9.9% decrease in power supply fees. Meanwhile, a further contribution to decreases in regulated price rates came from decreased prices in medications (-0.4%) and air transports (-1.7%).
The annual growth rate for regulated product and service prices has been -4.4%, which is 1.9% lower than in the previous month, and 11.8% lower than in July 2017.
