Inflation holds steady at seven-month low: Consumer prices remained unchanged from June, recording a 1.5% increase y-o-y in July 2024, according to fresh data from the General Authority for Statistics (Gastat) (pdf). On a monthly basis, prices inched up 0.1% last month, primarily driven by a 1.2% uptick in rent prices.

IN CONTEXT- Inflation has held steady at 1.6% for three consecutive months from March through May of this year, but declined to 1.5% in June.

The usual culprit: House rental prices — the heaviest weighted component in the consumer basket — experienced the most significant y-o-y rise, growing 11.1% in July compared to the same month in 2023 on the back of a 12% increase in apartment rental prices, Gastat said.

Fatter monthly bills: While the report doesn’t provide a separate inflation figure for utilities including water, electricity, and gas, and not for fuel, it points to a 9.3% y-o-y rise in the prices of utilities, fuel, and housing combined.

Also on the up: Food, education, and hospitality. Food and beverage prices saw a 0.4% y-o-y uptick, driven by a 5.3% increase in the price of vegetables. Education also got more expensive with a 1.6% y-o-y increase, while restaurants and hotels saw their prices grow 2.3% y-o-y.

On the other side of the spectrum: Healthcare services prices fell 1.4% y-o-y, transport 3.5%, furniture 3.4%, and clothing and footwear saw a 3% decline.

MEANWHILE- Producer prices rose 3.1% y-o-y in July, according to Gastat’s wholesaleprice index (pdf). The uptick was driven by an increase in the price of transportable goods (8.3%), on the back of increases in the prices of basic chemicals (15.7%) and refined petroleum products (12.0%). Wholesale prices dipped 0.1% m-o-m last month.

Tags: