Headline inflation decreased from 2 percent in June to 1.1 percent in July 2025, remaining below the lower bound of the medium-term objective range of 3 – 6 percent, and was significantly lower than the 3.7 percent recorded in July 2024. The decrease in inflation between June and July 2025 was mainly on account of the adjustment in electricity tariffs effected in July 2025, which reduced headline inflation by 0.64 percentage points. Furthermore, inflation decreased on account of the deceleration in the annual price changes of some categories of goods and services, notably Food & Non-Alcoholic Beverages and Transport. Similarly, the 16 percent trimmed mean inflation and inflation excluding administered prices decreased from 2 percent and 3.9 percent to 1.4 percent and 3.5 percent respectively, between June and July 2025.
Inflation for domestic tradeables decreased from 4.3 percent to 4 percent between June and July 2025, mainly due to a deceleration in the annual price changes of some food items in this category. Similarly, inflation for imported tradeables declined from 1.1 percent to 0.7 percent over the same period, primarily driven by a decrease in the price of most food items in the basket. As a result, all tradeables inflation declined from 2 percent to 1.6 percent during the corresponding period. Meanwhile, inflation for non-tradeables decreased significantly from 2 percent to 0.3 percent in the same period, mainly due to the reduction in electricity tariffs effected in July 2025.