Federal inflation decelerated in August to 0.72% y-o-y, inching down 0.45 percentage points from July’s 1.17%, according to the latest data from the Federal Competitiveness and Statistics Center. August’s reading is one of the lowest federal inflation figures recorded in 2025, coming in just above the 0.55% and 0.60% recorded in May and June.

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Housing, water, electricity, and gas were the primary drivers of inflation during the month, with their prices rising 3.6% y-o-y, followed by ins. and financial services with 3.08% y-o-y inflation. Meanwhile, furniture and household goods prices rose 2.32%, tobacco increased 1.81%, and education surged 1.6%.

On the flipside, some sectors saw deflation during the month, with the largest deflation rate recorded in transport (-5.07%). Other sectors with a negative inflation rate during the month include textiles, clothing, and footwear (-3.28%), food and beverages (-0.81%), recreation and culture (-0.36%), and communications (-0.24%).

On a monthly basis, the consumer price index recorded -0.01%, down from 0.54% in July, driven by negative inflation in recreation and culture (-3.93%), textile, clothing, and footwear (-0.81%), restaurants and hotels (-0.22%), and communications (-0.02%).

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