North Macedonia's average annual inflation accelerated by 1.5 percentage points (pp) from the previous month to 16% in July (chart), statistics office data showed on August 8.
Inflation started to increase rapidly since April 2021. The central bank said in July that the inflation was mainly driven by import prices of food and energy, which are growing at a much stronger pace than expected. However, the pressures quickly spilled over to the prices of other products and services, and added to fuel inflationary expectations.
Month-on-month, the consumer price index (CPI) in North Macedonia slowed down by 0.9 pp from the previous month to 1.9% in July.
As in the previous months, transport costs increased the most year on year in July, by 24%, followed by food and non-alcoholic drinks (23.6%), hotel and restaurants (15.8%) and housing, water, electricity, gas and other fuels (15.8%).
In the group of food, prices of edible oil and fats climbed the most year on year, by 51.9%, followed by bread and cereals (36.5%) and vegetables (23.3%).
In the first seven months of the year inflation was 10.9%.
The retail price index went up by 14% y/y and moved up by 2.5% on a monthly basis in July.
In 2021, average inflation was 3.2%.