Inflation moderates for second month in July as fuel effects ease
Consumer inflation met expectations of a 4.6% annualised rise in July, driven by the statistical effects of a sharp drop in fuel prices in early 2020
Consumer inflation eased for a second month in July and met economist's expectations, as the base effects of a sharp fall in fuel prices in 2020 continued to wane.
Inflation, as measured by the annual change in the consumer price index, moderated to 4.6% in July from 4.9% in June, itself a moderation from May’s 5.2%, Month on month, inflation rose 1.1% in July from June.
The headline number is in line with the Thomson-Reuters consensus, and economists had pointed to base effects of a sharp fall in fuel prices in early 2020, even as oil rose sharply in 2021.
Fuel saw a 15.2% year-on-year increase July, but that was significantly down from June’s 27.5% rise.
Food and nonalcoholic beverages increased 6.7% year on year, and contributed 1.1 percentage points to the headline figure.
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