The annual inflation rate, which measures the evolution of consumer prices in the last year, dropped to 4.56% in July this year, from 5.4% the month before, according to data from the National Statistics Institute (INS).
In July, food prices increased by 3.42% year-on-year while the prices of non-food products went up by 6.23% and those of services increased by 2.68%.
Compared to December 2017, the highest price increases were registered in July for air transport – 15.86%, natural gas – 10.43%, other vegetables and canned vegetables – 9.18%, fresh fruits – 6.88% and citrus fruits – 6.71%.
The central bank BNR expects the annual inflation rate to remain flat in the third quarter and start to decline in the last quarter.
The bank’s board decided on Monday, August 6, to keep the monetary policy rate unchanged at 2.5% per year.
Source: National Statistics Institute August report.