Annual inflation dips in July

The latest data of the Central Statistical Bureau (CSB) released August 8 show that in July 2018, compared to July 2017, the average level of consumer prices rose by 2.6 %.  Prices of goods grew by 2.4 % and prices of services by 3.2 %.

Compared to July 2017, in July 2018 the average level of consumer prices was mainly influenced by the rise in prices of goods and services related to transport, goods and services related to housing, alcoholic beverages and tobacco products, prices in miscellaneous goods and services group, prices of health care, as well as drop in prices of food and non-alcoholic beverages.

Compared to June, in July 2018 the average level of consumer prices decreased by 0.8 %. Prices of goods fell by 1.3 %, while prices of services rose by 0.4 %. Decline in prices of clothing and footwear, food and non-alcoholic beverages, alcoholic beverages and tobacco products had the greatest lowering impact, while prices of goods and services related to housing, goods and services related to recreation and culture had the most important upward effect.

Commenting on the data, Swedbank said: "Average price and wage growth trends so far have been pretty favourable to an average consumer. Average annual inflation has been slower than last year while the average gross and net wage growth has been faster. Most likely, similar trends will prevail up until the end of the year. Consequently, the average purchasing power could climb at the fastest pace in the past four years."

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Economy
Economy