2023-07-12 09:24:49
Updated Wednesday, July 12, 2023 – 09:24
The CPI closed at 1.9%, although the underlying data remains at 5.9%. In the decrease, the step effect has an important weight with respect to the data of 2022
Some women buy fish in a supermarket.EM
The National Institute of Statistics (INE) confirmed this Wednesday that the consumer price index (CPI) closed June at 1.9%, almost a point and a half lower than in May, and deflated to Ukraine’s pre-war levels. This evolution is explained by the drop in fuel and the costs associated with housing, as well as a more moderate rise in the price of food, which slowed down its rise to 10.3%, more than one and a half percentage points less than in the previous month.
The better evolution of inflation favored a drop in the underlying rate -which does not include fresh food (vegetables, fruits…) or energy-, which closed at 5.9%, two less than a month ago, and continues its downward path, although it remains at levels of a year ago. Likewise, the harmonized consumer price index (IPCA), which measures domestic consumption, stood at 1.6%, almost one and a half points less than in May.
However, this sharp drop in inflation is due to a step effectsince, in the monthly variation, consumer prices registered a rise of 0.6% compared to May, the month in which prices did not experience any evolution, according to Europa Press.
Regarding general inflation, Statistics blamed most of the slowdown in the rise in prices on the cost of transport, which fell by 7.6% compared to last year due to the new year-on-year drop in fuel prices. and lubricants for personal vehicles.
leisure becomes more expensive
Food also had an impact on softening the CPI due to the moderation of its rise, although they are still becoming very expensive (+10.3%) compared to a year ago. So did the costs associated with housing, which fell by 12.7% in June thanks to cheaper liquid fuels.
In the opposite direction, leisure and culture became more expensive by 5.2% in June, nine tenths more than in the previous month, due to the evolution of the prices of the tourist packages; and limited the annual reduction of the CPI.
After knowing the data, sources from the Ministry of Economic Affairs celebrated the “positive evolution” of the CPI and linked it to “the effectiveness” of the main tax reduction measures and bonuses implemented by the Government.
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