The consumer price index (CPI) fell by 0.8% in July in relation to the previous month and placed its year-on-year rate at 2.9%, two tenths above the previous month and its highest rate since the beginning of 2017 , according to the data published this Friday by the National Institute of Statistics (INE), which confirm the advanced at the end of last month by the Agency.
With this rebound, with which the annual IPC chains its seventh consecutive positive rate, inflation continues at unknown levels for four years. In fact, this rate of 2.9% is the highest since February 2017, when it stood at 3%.
To the evolution of prices in July has contributed, mainly, the increased accommodation and food services and the fact that telephony prices remained stable, compared to the decline they experienced in the same month of 2020.
At the other extreme highlights the price decrease in the housing group, which cut its annual rate 1.5 points, up to 9.4%, due to the VAT reduction in electricity prices. On the other hand, in July of this year, gas prices increased, compared to the decline in equal month of 2020.
In monthly rate (July on June), the CPI fell by 0.8% after four months of increases. It is the largest monthly trace of inflation since July 2020, when it decreased by 0.9%. To this also contributed the decrease in VAT in electricity, as well as the summer rebates in dress and footwear.
For its part, underlying inflation (without unprocessed foods or energy products) placed its year-on-year rate in July at 0.6%, four tenths more than in June and 2.3 points lower than the general index.
Date Of Update: 13 August 2021, 03:29
