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Consumer price inflation picks up to 3.1% in June

Consumer prices were 3.1% higher on average in June 2018 than a year earlier, according to a first release of monthly data from the Central Statistical Office (KSH). Particularly significant price increases were measured over the past year for motor fuels, as well as for tobacco.

State news wire MTI noted that the June increase in consumer prices is nearly in line with the consensus of eight analysts polled by business news website, who expected inflation to accelerate to 3.2% in June.

Annual CPI harmonized for better comparison with other European Union member states stood at 3.2% in June, MTI added. Seasonally adjusted core inflation, which excludes volatile fuel and food prices, stood at 2.4%, while inflation calculated with a basket of goods and services typically used by pensioners was 2.7%.

In June 2018 compared to June 2017, food prices rose by 3.4%, within which the price of butter rose 12.2%, pasta products 11.2%, eggs 10.1%, milk products 9.0%, flour 5.1%, and poultry meat 4.6%, while sugar became 22.1% cheaper.

The highest price increase of 6.2% on average was recorded in the category of other goods (pharmaceutical products, motor fuels, household products and recreational goods), within which consumers paid 15.0% more for motor fuels.

The average price of alcoholic beverages and tobacco was up by 5.9%, while services became 1.6% dearer on average.

Electricity, gas and other fuels were 1.4% more expensive, within which firewood prices increased by 13.2%, and butane and propane gas prices by 4.6%, while prices of electricity, natural and manufactured gas and purchased heat were unchanged.

Some 0.6% more was paid for clothing and footwear, and 1.1% less for consumer durables.

In June 2018 compared to the preceding month, consumer prices increased by 0.3% on average. Food became slightly cheaper, mainly due to a decrease in the price of seasonal food items. Motor fuel became 3.2% more expensive from May to June.

In January–June 2018, compared to the first half of 2017, consumer prices were up by 2.3% on average.

Consumer price data for July 2018 will be published on August 8.