Consumer prices rose a seasonally-adjusted 3.15% in July over the previous month, picking up from the 3.02% rise recorded in June. The slight acceleration was primarily driven by rising prices for transport, housing and utilities, and food. Overall, the monthly inflation reading remained extremely elevated by historical standards.
Inflation came in at 31.7% in July, which was up from June’s 29.8%. July’s reading was the highest inflation rate since November 2003. In July, inflation for imported items exceeded domestic inflation for the fourth month running, reflecting current global inflationary pressures. Consequently, the trend pointed up, with annual average inflation coming in at 18.4% in July (June: 16.4%).
FocusEconomics Consensus Forecast panelists expect inflation to average 24.8%, which is up 5.1 percentage points from last month’s forecast. In 2023, they see inflation averaging 20.4%.