HCP: Inflation falls by almost half to 0.7% in Q2-2024

by times news cr

2024-07-08 14:44:48

This decline would have resulted, essentially, from the 0.5% drop in the prices of food products, while those of non-food products would have, conversely, accelerated by 1.5%, after +0.9% in the first quarter, explains the HCP in its economic update for the second quarter of 2024 and the outlook for the third quarter of 2024.

Core inflation, which excludes prices set by the State and volatile products, also fell from +2.5% to +2.2%, due to the decrease in the prices of food and manufactured products, the HCP specifies.

The fall in the prices of fresh food products would have been the main driver of the decline in overall inflation, with a contribution of -0.8 points, instead of -0.5 points in the previous quarter, notes the same source.

This decline would have been attributable to the decrease in the prices of fresh vegetables and citrus fruits, after the strong increases observed in the same quarter in 2023. The prices of eggs, poultry and cooking oil would also have decreased.

However, some food items, such as fruits, red meat and spices, are said to have seen their prices increase, due to the drought and rising production costs.

For their part, the prices of non-food products would have experienced an upward turnaround, after several quarters of decline, mainly due to the increase in energy inflation of 4.2%, linked to the adjustment of gas and fuel prices.

Prices of manufactured goods would have continued to fall slightly, while those of services would have remained stable.

For the third quarter of 2024, inflation is expected to remain broadly stable, reaching around +0.8% for headline inflation and +2.1% for core inflation, supported by a reduction in inflationary pressures in the food and non-energy sectors.

2024-07-08 14:44:48

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