The largest upward contribution to the CPI came from: housing, water, electricity, gas & other fuels (up 4.0 percent, the same as in June), mainly due to higher rents and mortgage interest repayments in addition to an increase in the price of electricity and gas; restaurants & hotels (2.3 percent vs 3.1 percent), primarily due to higher prices for alcoholic drinks and food consumed in licensed premises, restaurants, cafes etc. which was partially offset by lower prices for hotel accommodation; and alcoholic beverages & tobacco (2.5 percent vs 3.3 percent), mainly due to higher prices for tobacco products.
By contrast, prices fell for communications (-6.8 percent vs -6.6 percent), due to a reduction in the cost of telephone & telefax equipment and telephone & telefax services; transport (-1.2 percent vs 1.2 percent), primarily due to lower prices for petrol and diesel and a reduction in airfares; furnishings, household equipment & routine household maintenance (-3.8 percent vs -3.5 percent), due to the reduced cost of furniture & furnishings, non-durable household goods and household textiles; and clothing & footwear (-1.6 percent vs -1.0 percent), due to sales.
Annual core inflation, which excludes energy and unprocessed food, slowed to 0.6 percent in July from 1.1 percent in June.
On a monthly basis, consumer prices fell 0.2 percent in July, reversing a 0.2 percent advance in June, as costs fell for clothing & footwear (-6.2 percent), furnishings, household equipment & routine household maintenance (-1.6 percent) and alcoholic beverages & tobacco (-0.4 percent).
The harmonized index of consumer prices rose 0.5 percent from the previous year (vs 1.1 percent in June); but fell 0.2 percent month-over-month (vs 0.2 percent in June).