Cooled further in July, but upside risks to prices remained elevated
The headline inflation slowed to an almost two-year low of 2.0% in July (Jun: 2.4%), slightly below the consensus and house forecast of 2.1%
- The continued deceleration in price pressures was mainly attributable to a MoM deflation recorded in three components, namely miscellaneous goods & services (weight: 6.7%), communication (4.8%) and recreation services & culture (4.8%). Despite a 0.4% increase in food inflation, CPI marginally eased to 0.08% MoM (Jun: 0.15%).
- Similarly, core inflation cooled further to a 14-month low of 2.8% YoY (Jun: 3.1%). The core component experienced muted inflationary pressure on a MoM basis (Jun: 0.2%).
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