Headline inflation decreased from 10.7 percent in June 2026 to 9.4 percent in July but remained above the medium-term objective range of 3 – 6 percent and significantly higher than the 1.1 percent recorded in July 2025. The decrease in inflation between June and July 2026 was mainly due to the decrease in domestic fuel prices effected on 7 July 2026, which reduced headline inflation by 2.3 percentage points. The reduction in domestic fuel prices resulted in a significant deceleration in the annual rate of price changes in the Transport category. The 16 percent trimmed mean inflation also decreased from 9 percent to 8.4 percent, while inflation excluding administered prices increased from 5.9 percent to 6.3 percent between June and July 2026.
Inflation for domestic tradeables increased slightly from 7.9 percent to 8.1 percent between June and July 2026, in part, due to the marginal increase in prices of some food items. In contrast, inflation for imported tradeables decreased from 17.9 percent to 13.3 percent in the same period, mainly due to the decrease in domestic fuel prices effected on 7 July 2026. Overall, all tradeables inflation decreased from 15.2 percent to 11.9 percent between June and July 2026. Meanwhile, inflation for non-tradeables increased from 3.9 percent to 5.6 percent in the same period, mainly due to the base effects of the reduction in electricity tariffs effected in July 2025.