Headline inflation increased from 2.8 percent in June to 3.7 percent in July 2024, reverting to within the medium-term objective range of 3 – 6 percent, and was significantly higher than the 1.5 percent in July 2023. The increase in inflation between June and July 2024 was mainly due to base effects associated with the decrease in domestic fuel prices effected 21 June 2023, which had previously subtracted 0.59 percentage points from headline inflation. Meanwhile, there were partially offsetting movements in the annual price changes for some categories of goods and services. Inflation for domestic tradeables increased from 3.4 percent to 3.7 percent between June and July 2024 due to a broad-based increase in food prices. Similarly, imported tradeables inflation increased from 2.9 percent to 4.9 percent in the same period, mainly due to base effects associated with the adjustment of domestic fuel prices. As a result, all tradeables inflation increased from 3 percent to 4.6 percent between June and July 2024. Conversely, inflation for non-tradeables decreased slightly from 2.6 percent to 2.5 in the same period.
Similarly, the 16 percent trimmed mean inflation and inflation excluding administered prices increased from 2.6 percent and 2.7 percent to 3.5 percent and 2.9 percent, respectively, between June and July 2024.