Prices of food are set to rise 2.5 percent in July, following a 2.4 percent gain in June, boosted by higher prices of both processed food (2.0 percent from 1.7 percent) and unprocessed food (3.6 percent from 3.4 percent). Additionally, energy inflation is expected to pick up to 7.8 percent in July from 4.2 percent in June, due to an increase in non-regulated energy products prices (10.4 percent from 9.4 percent) and a rebound in prices of regulated energy products (5.3 percent from -1.2 percent). Additional upward pressures came from: restaurants & hotels (1.2 percent from 1 percent); housing & utilities (2.5 percent from a flat reading); miscellaneous goods & services (2.6 percent from 2.3 percent) and alcoholic beverages & tobacco (3.8 percent from 3.5 percent). On the other hand, cost slowed for transport (3.9 percent from 4.2 percent); recreation & culture (0.3 percent from 0.8 percent) and clothing & footwear (0.1 percent from 0.2 percent). Meanwhile, inflation was steady for furniture & household equipment (0.2 percent, the same as in June) and prices fell for health (-0.1 percent from a flat reading); communication (-1.9 percent from -3 percent) and education (-16.1 percent, the same as in June).
Annual core inflation rate, which excludes energy and unprocessed food rose to 0.7 percent from 0.8 percent in the prior month. Excluding only energy, the inflation should increase to 0.9 percent from 1.0 percent in June.
On a monthly basis, consumer prices went up 0.3 percent, following a 0.2 percent gain in June and above market forecast of 0.2 percent.
The harmonised index of consumer prices is expected to rise by 1.9 percent from the previous year (1.4 percent in June); and to decrease by 1.4 percent from the previous month, after a 0.2 percent increase in June.