Inflation rises two tenths in July, to 2.9%
The Consumer Price Index (CPI) fell 0.7% in July in relation to the previous month and placed its interannual rate at 2.9%, two tenths above that of June, according to advanced data published this Thursday by the National Institute of Statistics (INE).
Historic change at the ECB: it raises the inflation target to 2% with flexibility to face crises
With the July data, the year-on-year CPI chains its seventh consecutive positive rate and continues at its highest levels since 2017.
According to Statistics, the year-on-year data for July was influenced by accommodation services and gas, whose prices increased this month compared to last year's drops, and food and non-alcoholic beverages, which decreased more in July 2020 than this month.
Also noteworthy, although in the opposite direction, is the drop in electricity prices, compared to the increase recorded in July last year.
In a monthly rate, the CPI fell 0.7% in July, after adding four consecutive months of increases.
The INE incorporates in the advance of the CPI data an estimate of core inflation (excluding non-processed food and energy products), which increased four tenths in July to 0.6%, which is more than two points below of the general CPI.
In the seventh month of 2021, the Harmonized Consumer Price Index (HICP) placed its interannual rate at 2.9%, four tenths more than that registered the previous month. For its part, the leading indicator of the HICP fell 1.2% in its monthly rate.