Inflation hits 28-month low in July

Inflation continued to slow in July, rising at a rate of 1.5%, the slowest rate since March 2021, said Cystat.

The Consumer Prices Index (CPI) rose 0.92 units to 115.30, from 114.38 units in June.

In January-July 2023, the CPI increased by 4.2% compared to the corresponding period of last year.

As regards economic origin, the largest positive change when compared to the index of July 2022 was recorded in Agricultural goods (12.9%), whereas the largest negative change was recorded in Petroleum products (-20.3%). In comparison to the index of the previous month, the largest change was monitored in Electricity (13.5%).

Compared to July 2022, the largest positive change was monitored in the category Food and Non-Alcoholic Beverages (9.9%), whereas the largest negative change was recorded in the category Transport (-9.2%).

In comparison to the CPI of the previous month, the largest change was noted in Clothing and Footwear, with a decrease of 10.8%.

For the period January–July 2023, compared to the corresponding period of the previous year, the largest changes were recorded in Food and Non-Alcoholic Beverages (8.9%) and Housing, Water, Electricity, Gas and Other Fuels (7.8%).

Impact Analysis in units

Compared to the Index of July 2022, the category Food and Non-Alcoholic Beverages (2.06) had the largest positive effect on the change of the CPI, whereas the category Transport (-1.83) had the largest negative effect.

The largest positive effect on the change of the CPI compared to the previous month was recorded in categories Transport (0.73) and Housing, Water, Electricity, Gas and Other Fuels (0.72) whereas the category Clothing and Footwear (-0.84) had the largest negative effect.

Petroleum products had the most notable effect on the change of the CPI of July 2023 compared to July 2022, with -2.60. Finally, Electricity (0.71) had the largest positive effect on the change of the CPI of July 2023 compared to the previous month.