Headline inflation was constant at 0.9 percent between June and July 2020, remaining below the lower bound of the Bank’s medium-term objective range of 3 – 6 percent, and significantly lower than the 2.9 percent in July 2019. The constant inflation between June and July 2020 reflects relatively stable prices for some categories of goods and services, as well as offsetting movements in the annual price changes for other commodity groups. Inflation remained stable for: Education (4.7 percent); Health (1.4 percent); and Communication (0.4 percent). The inflationary pressure was further eased by inflation falling for: Miscellaneous Goods and Services (from 1.1 to 0.5 percent); Furnishing, Household Equipment and Routine Maintenance (from 2.3 to 1.9 percent); Restaurants and Hotels (from 3.5 to 3.1 percent); and Transport (from -6.7 to -6.9 percent). However, the downward pressure on inflation was partly offset by inflation increasing with respect to: Alcoholic Beverages and Tobacco (from 5.4 to 6.6 percent); Food and Non-alcoholic Beverages’ (from 3.6 to 3.9 percent); Clothing and Footwear (from 2.2 to 2.4 percent); Housing, Water, Electricity, Gas and Other Fuels (from 5.7 to 5.9 percent); and Recreation and Culture (from -0.8 to -0.7 percent).
The 16 percent trimmed mean inflation and inflation excluding administered prices remained unchanged at 1 percent and 2.8 percent, respectively, in the same period.