The National Institute of Statistics (INE) confirmed this Wednesday that the consumer price index (CPI) closed June at 1.9%, almost a point and a half less than in May, and deflated to Ukraine’s pre-war levels. This evolution is explained by the drop in fuel and the costs associated with housing, as well as a more moderate rise in the price of food, which slowed its rise to 10.3%, more than one and a half percentage points less than in the previous month.
The better evolution of inflation favored a drop in the underlying rate -which does not include fresh food (vegetables, fruits…) or energy-, which closed at 5.9%, two less than a month ago, and continues its downward path, although it remains at levels of a year ago. Likewise, the harmonized consumer price index (IPCA), which measures domestic consumption, stood at 1.6%, almost one and a half points less than in May.
However, this strong reduction in inflation is due to a step effectsince, in the monthly variation, consumer prices registered a rise of 0.6% compared to May, the month in which prices did not experience any evolution, according to Europa Press.
Regarding general inflation, Statistics blamed most of the slowdown in the rise in prices on the cost of transport, which fell by 7.6% compared to last year due to the new year-on-year drop in fuel prices. and lubricants for personal vehicles.
Food also had an impact on softening the CPI due to the moderation of its rise, although they are still becoming very expensive (+10.3%) compared to a year ago. So did the costs associated with housing, which fell by 12.7% in June thanks to cheaper liquid fuels.