Consumer prices rose 0.16% MoM in July, which was lower than the 0.65% increase recorded in June. The July result was the weakest reading since March. The result was driven by moderation of price pressures for transportation and an easing of price pressures on clothing and footwear.
Inflation was 3.9% in July, down from 4.2% in June. Average annual inflation rose to 2.5% in July (June: 2.2%).
FocusEconomics committee members see inflation ending in 2022 at 3.1%, 0.3 percentage point higher than last month’s forecast. For 2023, they expect year-end inflation to be 1.7%.