Consumer inflation (headline CPI) edged up slightly to 6,4% in August compared with July’s reading of 6,3%. The increase was mainly a result of upward pressure from food and motor vehicle prices. Annual food and beverage inflation, which registered 8,8% in June and July, climbed to 9,4% in August. Food inflation has been increasing since December 2013 when it registered at 3,5%. Meat and dairy products were the main drivers of food inflation in August. Meat prices returned to their inflationary trend after a brief pause in July, increasing by 1% between July and August while July’s comparable figure was -0,3%. Beef (1,2%), mutton/lamb (3,5%) and chicken (0,7%) all showed strong monthly increases.
Milk and cheese prices increased by 2,0% and 3,3% respectively between July and August, following an average increase of 1,6% between June and July. The milk, eggs and cheese index showed an annual increase of 12,7%.
While petrol prices were unchanged in August, prices of new vehicles increased by 1,2% from the previous month. They now show an 8,1% annual inflation rate – the highest annual increase for new cars since December 2009. This increase follows recent press statements by vehicle manufacturers and retailers that prices would gradually rise to compensate for currency depreciation over this year.
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