Consumer price index in July

The consumer price index decreased for the third month in succession compared to the same month of the previous year. In July, goods were 2.7% cheaper and services 2.9% more expensive compared to July of the previous year. From goods food products were 0.4% and manufactured goods 4.5% cheaper.

Regulated prices of goods and services have risen 3.8% and non-regulated prices fallen 2.1% compared to July of the previous year.

Compared to July of the previous year, the price decrease of motor fuel (-19.8%), the price decrease of food (-5.1%) and the price increase of alcoholic beverages and tobacco (the price increase together 13%) had the biggest impact on the consumer price index. Milk and dairy products (price decrease 14.4%) gave over a half of the impact of price decrease of food on the index.

The consumer price index of July was also definitely influenced by the rate of value added tax (VAT) that was raised from 18% to 20%. This brought along a large-scale price correction in the majority of commodity groups. Without taking into account the changes in VAT rate, the consumer price index of July, compared to the previous month, was mainly influenced by the sales of clothing and footwear and by the price increase of heat energy.

Change of the consumer price index by commodity groups, July 2009