July sees strongest seasonal deflation since 2021, led by food and gasoline price drops

Consumer prices fell by 0.28% over the month, according to the Statistics Agency.

The monthly price decline, based on official data, was the strongest since 2021. Meanwhile, inflation since the beginning of the year stood at 4.9%—a higher rate was only observed in 2022 over the previous five years.

Over the last 12 months, the price increase was 10.5%. This is significantly higher than the annual inflation at the end of July 2023 but lower than the three preceding years.

Food products became cheaper by 1.5% in July and by 3.3% over seven months. On an annual basis, food prices increased by only 2.9%, the lowest in recent years.

Fruit prices decreased by 11.2% in July, and vegetable prices by 5.6%. Eggs became cheaper by 2.5%, and milk by 0.5%. However, fat and oil products rose by 0.8%, and fish by 0.6% over the month.

Annually, vegetable prices decreased by 18.6%. Onions and cabbage became nearly half as expensive, and tomatoes dropped by 27.6%. Meanwhile, fruit prices rose by an average of 11%, with pomegranates increasing 1.9 times and grapes by 60%.

In the non-food segment, monthly price growth was 0.7%, with annual growth accelerating to 8.3%. Clothing prices increased by 0.6% in July and by 6% over the year. Shoe prices rose by 0.3% for the month and by 5.5% annually.

Prices for household appliances increased by 0.9% over the month and by 6.8% compared to last July. Smartphone prices increased by another 0.1% (0.6% over the year), and computers by 0.8% (2.1% over the year). Medicine prices jumped by 2.2% over the month and by 22% over the year.

Gasoline prices fell by 0.7% over the month, although they increased by 20% since last July. Propane prices rose by 1.9% in July and by 16% over the year.

Inflation in the services sector in July was only 0.5%. However, the annual growth reached 28% after energy tariff increases.

Price growth in public catering slightly accelerated (0.7% for the month and 12.2% over the year), while it slowed down in the hotel sector (0.2% and 17.8%). Air transportation prices rose by 0.8% in July (6.9% over the year), and rail transportation prices increased by 2% (43.9% over the year).