CPI subsided in June, but effects of riots unknown
25 Jul, 2022

Highlights:

June’s year-on-year (y/y) headline consumer price inflation (CPI) rate decreased to 4.9% from 5.2% in May.
Month-on-month (m/m) headline CPI rose by a still subdued 0.2% in June compared to 0.1% in May.
The lower y/y headline CPI rate in June was mostly caused by a smaller y/y increase in the price of fuel.
Fuel, meat and rent contributed to upward pressure on headline CPI.
Core CPI increased to 3.2% y/y from 3.1%
CPI for July and August may receive upward pressure from municipal rate increases and the effect of the riots.
The destruction caused to supply chains and infrastructure by rioters may put upward pressure on CPI, but the magnitude thereof will only be known once specifics become available.
The effect of the riots on CPI should not contribute to a faster increase in interest rates.

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