Harmonized inflation declines to lowest level since February 2021 in July

Latest reading: Harmonized inflation eased to 0.1% in July, following June’s 0.5%. July's reading represented the lowest inflation rate since February 2021. Looking at the details of the release, prices for food and non-alcoholic beverages declined. Moreover, housing and utilities prices fell at a quicker pace in July compared to the previous month, while prices for recreation grew at a more subdued pace. Accordingly, the trend pointed down mildly, with annual average harmonized inflation coming in at 1.7% in July (June: 1.9%). Meanwhile, consumer prices fell 0.9% on an annual basis in July, which was a steeper drop compared to June's 0.4% decrease. Lastly, harmonized consumer prices increased 0.40% in July over the previous month, slowing down from the 0.42% rise seen in June.

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