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Inflation falls in June

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In June, headline inflation, as measured by the Consumer Price Index (CPI) declined from 8.3 percent in May to 7.9 percent. There were mixed movements across commodity groups: with declines in inflation for alcohol and tobacco (from 8.3 percent to 8.2 percent); transport (from 15.6 percent to 10.1 percent, as the effect of the May 2010 rise in prices for both petrol and diesel dropped out of the inflation calculation); communication (from -4.5 percent to -5.4 percent) and miscellaneous goods and services (from 5.4 percent to 4.8 percent). However, these declines were offset by increases in inflation for food and non-alcoholic beverages (from 6.2 percent to 6.7 percent); housing, water, electricity, gas and other fuels (from 4.3 percent to 8.5 percent, due to the hike in electricity tariff for domestic consumers effected on June 1, 2011); furnishing, household equipment and routine maintenance (from 8.3 percent to 8.6 percent); health (from 4.4 percent to 4.6 percent); recreation and culture (from 11.4 percent to 11.5 percent) and restaurants and hotels (from 9.0 percent to 10.0 percent). The annual rate of price change was constant for clothing and footwear and education at 9.6 percent and 10.6 percent, respectively.

 

The trimmed mean measure of core inflation also declined from 8.2 percent in May to 7.6 percent, while inflation excluding administered prices rose from 7.3 percent in May to 7.4 percent.

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