Consumer prices declined at a flat rate of 0.16% in July from the previous month, swinging back from the 1.25% high recorded in June. The July result was the first drop in prices since January. Looking at the release details, the reading was mainly driven by lower prices for housing, water, electricity, gas and other fuels. In addition, transportation price pressures declined at a faster pace.
CPIF inflation eased to 8.0% in July, down from 8.5% in June. However, the trend is up, with annual inflation averaging 5.1% in July (June: 4.5%).
Members of the FocusEconomics Consensus forecast committee see CPIF inflation at 6.1% in 2022, 0.2 percentage point higher than last month’s forecast, and 2.9% in 2023.