July Inflation Moderates Slightly to 2.1%

Consumer prices in July saw a year-on-year increase of 2.1%, marking a slight deceleration from June's 2.2% rise. The moderation was partly due to decreases in electricity, gas, and water rates, despite the upward pressure from rising living costs and service prices.

Key Drivers of Inflation

The Living Necessities Price Index, a reflection of perceived inflation, increased by 2.5%. Food items led the charge with a 3.2% rise, while non-food items saw a modest 2.0% increase. Notably, fresh food prices decreased by 0.5%, with significant drops in prices of cabbage, apples, carrots, and green onions.

Processed Foods and Dining-Out Costs Continue to Rise

Processed food prices, impacting consumers' perceived inflation, remained high at a 4.1% increase. Coffee prices soared by 15.9%, and bread prices rose by 6.4%. Dining-out prices also increased by 3.2%, driven by higher raw material and labor costs.

Electricity, Gas, and Water Rates Show Significant Decrease

Contrasting the general trend, electricity, gas, and water rates saw a notable decrease, with only a 2.7% year-on-year increase, down by 5.3% from the previous month.