Inflation stood at 10.5% in August, three tenths less than in July, with food soaring

The Consumer Price Index (CPI) moderated three tenths in August, down to 10.5%, compared to the same month of the previous year. The National Institute of Statistics (INE) raises general inflation by one tenth compared to the advanced figure and confirms the record for core inflation, which excludes energy and unprocessed food, at 6.4%.

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The CPI rose three tenths in August compared to the previous month, two tenths more than expected, and remains at highs not seen for more than 30 years, according to the final data published this Tuesday by Statistics.

With the moderation of three tenths registered by the interannual CPI in August, inflation ends a streak of three consecutive months of rises in its interannual rate: in May it climbed to 8.7%; in June it exceeded the feared double digits (10.2%) and in July it shot up to 10.8%. August is therefore the third consecutive month in which inflation exceeds double figures.

According to the INE, the moderation in the year-on-year CPI to 10.5% is mainly due to the drop in fuel prices. In fact, the transport group moderated its year-on-year rate by more than 4.5 points, to 11.5%, due to lower gasoline and lubricant prices.

By contrast, in August the prices of electricity and food rose. The latter registered an interannual increase of 13.8% in August, a rate three tenths higher than that of July and the highest since the beginning of the series, in January 1994. Particularly noteworthy is the increase in the price of meat, bread and cereals and milk, cheese and eggs.

In the housing group, the interannual rate increased almost two points in August compared to the previous month, to 24.8%, due to the rise in electricity prices, greater than that registered a year earlier.

Without taking into account the reduction of the special tax on electricity and the variations on other taxes, the interannual CPI reached 11.2% in August, seven tenths above the general rate of 10.2%. This is reflected in the CPI at constant taxes that the INE also publishes within the framework of this statistic.

In the last year, heating, lighting and water distribution have become more expensive by 47.2%; oils and fats have raised their prices by 24%; eggs are 22.4% more expensive; milk costs 25.6% more, and cereals, 21.7% more.

In monthly terms (August over July), the CPI registered a rise of three tenths (two more than expected), compared to the drop of three tenths experienced in July and the advance of 0.5% a year earlier.

Core CPI record

Core inflation (excluding unprocessed food and energy products) increased three tenths in August, to 6.4%, its highest value since January 1993. Thus, core inflation is more than 4 points below the general CPI rate.

In the eighth month of 2022, the Harmonized Consumer Price Index (IPCA) placed its interannual rate at 10.5%, two tenths lower than that registered in the previous month. For its part, the estimated monthly variation of the IPCA registers an increase of three tenths.