The consumer price index (CPI) for July shows a net decrease of 0.3% from the previous month, marking a brief pause in the monthly drift. Yet the annual rate climbed to 10.8%, the highest reading since September 1984, and, compared with June, it sits six-tenths higher. This picture comes from final figures released today by the National Institute of Statistics (INE). [Source: INE Attribution]
The INE confirms its earlier estimate of a stronger monthly rise when comparing July to June, with a one-tenth point advance. In other words, the monthly momentum extended its rise, even as the calendar month ended with a drop in the headline index. [Source: INE Attribution]
With the July uptick, inflation exceeded 10% for two consecutive months, remaining at 10.2% on a year-over-year basis after June. The sustained figure underscores persistent price pressures across multiple sectors, even as certain categories show relief within a broader inflationary environment. [Source: INE Attribution]
INE explains that the rise in the annual CPI to 10.8% in July is primarily driven by higher price levels in several key components. Electricity, apparel and footwear showed notable increases, with clothing and footwear prices contributing meaningfully to the annual uptick. Food and non-alcoholic beverages also registered elevated prices, reaching a 13.5% annual change, marking the highest rate since the data series began. [Source: INE Attribution]
On the other hand, transportation costs moved in a different direction. After rising in June, transport prices fell by three points in July, reflecting lower fuel and mineral oil costs. This relief in transportation expenses helped temper the overall CPI pace even as other sectors advanced. [Source: INE Attribution]
Basic scales up to 6.1%
Core inflation, which excludes unprocessed food and energy goods to strip out the most volatile elements, rose again in July, climbing six-tenths to 6.1%. This marks the highest point for core inflation since January 1993, signaling that underlying price pressures remain robust even as some components see relief. [Source: INE Attribution]
Looking back to the seventh month of 2022, the Harmonized Consumer Price Index (IPCA) recorded an annual rate of 10.7%, which was seven-tenths higher than June. The latest data also show that the monthly variation of the IPCA eased, down by 0.6%, suggesting some softening within the month-to-month dynamics. [Source: INE Attribution]