Inflation rises for first time in a year

Inflation in August surged to 2.6%, as the Consumer Price Index (CPI) reached 116.34 units, a 1.04-unit increase compared to 115.30 units in July 2023, according to Cystat.

This was the first inflation increase in 12 months, putting an end to a year-long downwards trajectory.

For the period January-August 2023, the CPI rose by 4.0% compared to the same period the previous year.

The largest upward change in August 2023, when compared to August last year, was observed in agricultural goods, which saw a substantial 14.0% increase. The largest negative change was recorded in petroleum products, with prices plummeting by 9.6%. In comparison to the previous month, petroleum products experienced a 5.1% increase, indicating fluctuations in the crucial sector.

When comparing August 2023 to August 2022, the category of food and non-alcoholic beverages experienced the most significant positive change, with a 10.0% increase, while transport saw the largest negative change, declining by 3.1%. Transport also exhibited the largest change when compared to the previous month, rising by 3.0%.

In terms of the cumulative effect on the CPI, Food and Non-Alcoholic Beverages had the largest positive effect with an increase of 2.11 units when compared to August 2022. On the other hand, Transport had the most substantial negative effect, with a decrease of 0.59 units.

For August 2023, the largest positive effect on the change of the CPI compared to the previous month was recorded in Transport (0.54 units) and Housing, Water, Electricity, Gas, and Other Fuels (0.44 units).

Petroleum products played a crucial role in the change of the CPI for August 2023 compared to August 2022, with a notable negative effect of -1.16 units. In contrast, Petroleum products (0.52 units) and Fresh Vegetables (0.44 units) had the most substantial positive effects on the change of the CPI for August 2023 compared to the previous month.