Core CPI, which excludes fresh food and energy, shoots up to 6.4%, the highest since January 1993
The bad news continues to happen in terms of prices. As anticipated, the inflation spiral appears to have peaked and the August CPI gave consumers a pause. Specifically, and according to the latest data released Tuesday by the National Institute of Statistics (INE), inflation was 10.5% last month.
The figure is three-tenths lower than the peak of 10.8% reached in July (the highest level since September 1984) and ends a series of three consecutive months of rises in inter-annual interest rates. But it is one-tenth more than the 10.4% that the statistical authority had expected a few weeks ago. And it remains anchored in the double digits that keep governments, businesses and households on their toes in the face of the rising cost of living and loss of purchasing power.
In fact, August was the third consecutive month in which inflation crossed double digits. Core inflation, excluding unprocessed foods and energy products, rose three-tenths to 6.4% in August, the highest since January 1993.
In general, it can be concluded that the decline in gasoline prices in recent weeks is behind the moderation in the year-on-year CPI. However, the weight of electricity and food prices is increasing. The latter posted an annual increase of 13.8% in August, three-tenths above the rate recorded in July and the highest since the start of the series, in January 1994.
Particularly striking is the price increase of basic items in the shopping cart, such as meat, bread and cereals and milk, cheese and eggs.
Compared to the prices we had last August, fuels have become almost 25% more expensive (although they have fallen by 7% in August), energy products by 37.4% and heating by 47.2%.
But the most disturbing situation is food, where the price of products such as milk has risen by almost 26% in the past 12 months, or oil by 24%. Grains were up 21%, while bread or beef were up more than 15%. Eggs have become even more expensive, 22%, 4%, while potatoes, legumes and fresh vegetables have also increased by about 15% year-on-year.
When the focus is on what these products have increased in just one month, the data also calls for spending control. Milk becomes 2.5% more expensive, while grains make it 1.4% more expensive.
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
