High prices of electricity and vegetables push inflation up for second consecutive month

Aug 11, 2024, 12:06 PM
High prices of electricity and vegetables push inflation up for second consecutive month

After falling commodity prices in the first four months of this year, inflation rose in June as in May due to rising electricity prices.

According to the CPI report released by the National Bureau of Statistics, inflation rose by 0.73 percent during June. Overall inflation stood at 1.40 percent year-on-year.

The main reason for the higher inflation in June was the rise in electricity prices. The second highest increase in price was in vegetables. Other items that rose in price included furniture, milk, dairy products, eggs, accommodation services and airline tickets.

The CPI report shows that unlike May prices rose in many sectors in June. Prices decreased only in sports, entertainment and telecommunication services.

Year-on-year, the biggest increase in price was seen in food items. Food prices rose 6.4 percent between June last year and June this year. Food prices usually cause the biggest price increases and the biggest impact on inflation.

The CPI report stated that despite increasing commodity prices in June, the increase was not as much compared to May. Electricity prices rose by 37.44 percent in May, while water prices rose by 45.70 percent.

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