Headline inflation eased marginally from 9.4 percent in July 2026 to 9.3 percent in August 2026. It remained above the medium-term objective range of 3 – 6 percent and was substantially higher than the 1.4 percent recorded in August 2025. The decrease in inflation between July and August 2026 primarily reflects the impact of the decrease in food and vehicle prices which decreased the annual rate of price changes in the Food and Non-Alcoholic Beverages and Transport categories, respectively. The 16 percent trimmed mean inflation rate also declined from 8.4 percent to 8.3 percent, while inflation excluding administered prices decreased from 6.3 percent to 5.9 percent between July and August 2026.
Inflation for domestic tradeables decreased from 8.1 percent to 7.2 percent between July and August 2026, partly, due to the slower annual price increases for certain food items. Likewise, inflation for imported tradeables fell from 13.3 percent to 13 percent over the same period, mainly due to the decrease in vehicle prices. Overall, all tradeables inflation decreased from 11.9 percent to 11.4 percent between July and August 2026. Meanwhile, inflation for non-tradeables increased from 5.6 percent to 6.2 percent in the same period, mainly due to the increase in electricity tariffs implemented in August 2026.