Highlights of July’s Inflation
July’s inflation was at 0.31% m-m or 3.32% y-y a significant surge from June’s 3.28% y-y, but it still fell shortly at BI’s target range of 2.5%-4.5% and was subject to seasonal event adjustment to new academic year.
The foodstuff, clothes & education contributed at the biggest to July’s level. The foodstuff inflation was at 0.80% m-m or 4.85% y-y as the price of chilies surged. Meanwhile, the clothes inflation was at 0.70% m-m or 4.19% y-y as the rising yellow’s metal prices spurred the prices of jewelries higher. The education inflation was at 0.92% m-m or 3.30% y-y due to the hike in educational tuition during the new academic year.
A Slowdown in Core Inflation
July’s core inflation was at 0.31% m-m or 3.18% y-y or slower than June’s 3.25% y-y, but it was still falling at a safe level of above 3%. The main commodities contributing to the core inflation were gold jewelries and educational tuition. The keeping-in-check inflation lingered due to BI’s concerted commitment to mapping inflation expectancy.
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