food kickback
Inflation picked up by 16 percent, reaching four-tenths in July, compared with 2.3 percent previously and 1.9 percent in June. The rise was driven in part by higher prices for fresh fruit, oils, and tourist packages, alongside a broad 2.2 percent monthly uptick in fuels.
Final July data from the National Institute of Statistics confirm the outlook previously shared by the INE on July 28. The report also shows a notable uptick in core inflation, which excludes the most volatile food and energy items, to 6.2 percent.
Core inflation’s increase helped offset somewhat the overall inflation pace, while discounts on clothing and footwear for the summer were larger than those seen in July 2022. Tourist prices were up as well, with packages rising 16 percent month over month and running 26.8 percent higher than July of the prior year.
food kickback
The food and non-alcoholic beverages group recorded a monthly rise of 0.8 percent, lifting the annual inflation rate in this category to 10.8 percent. In June, food inflation had eased to 10.3 percent from a peak of 16.6 percent in February, yet it remains markedly elevated. Food prices have stayed in double digits since April 2022, reflecting a sustained upward trend that began in April 2021.
In July, several staples showed meaningful increases: sugar was about 44.2 percent more expensive than a year earlier; oils rose roughly 20.4 percent; milk climbed 17.7 percent; potatoes gained 16.7 percent; fruit rose 11.6 percent, while eggs and pork products posted double-digit gains around 12.8 percent and 15.8 percent, respectively.
Energy
Overall, energy products rose by about 1 percent in July, with electricity falling 0.2 percent and natural gas slipping 1.4 percent, while fuels increased by roughly 2.2 percent.
Compared with July of the previous year, energy products dropped about 24.3 percent, yet electricity carried a steeper decline of around 41.9 percent on a year-over-year basis, with the broader energy category showing a 16.1 percent decrease in some measures.
fuels and fuels
Within the fuel and fuel oil subgroup, prices advanced 1.7 percent month over month, continuing the upward trend seen through the peak of summer. Despite this month-to-month rise, fuels remain roughly 14.8 percent cheaper than the same month last year, although the gap had been wider, around 18 percent, in June.
Demand for fuel typically climbs during peak summer travel, supporting price gains. In early August, gasoline and diesel prices rose by about 1.8 percent and 3.4 percent respectively, marking a fifth consecutive weekly increase since July began. The impact of these changes varies by fuel type, and comparisons to last year show different dynamics depending on the product in question. The European Petroleum Bulletin confirms the nuanced picture for petrol and diesel prices within the EU.
The latest uptick in fuel costs is part of a broader trend since June, with Brent crude hovering around $87.40 a barrel as of midweek. The rise stems from a combination of renewed demand and production adjustments agreed within the OPEC framework. The OPEC monthly report indicates a 3 percent year-over-year production decline, largely driven by Saudi Arabia’s substantial cuts, contributing to higher oil prices in July and into August.