North Macedonia’s annual inflation speeds up to 3.4% in July

North Macedonia’s annual inflation speeds up to 3.4% in July
By bne IntelliNews August 9, 2021

North Macedonia's average annual inflation speeded up to 3.4% in July, from 2.7% in the previous month, statistics office data indicated on August 9. In the first seven months of 2021, the average inflation was 2.5%.

The central bank said in July it expects consumer prices to increase further based on expected movements in import prices.  There are also risks related to uncertainty in the movement of world prices of primary products in the following period as well as the uncertain economic effects associated with the coronavirus (COVID-19) pandemic.

Month on month, the consumer price index (CPI) in North Macedonia moved up by 0.5% in July, after increasing by the same margin in the previous month.

Transport costs increased the most year on year in July by 13.6%, followed by hotel and restaurant prices by 5.6% y/y, housing, water, electricity and gas supply by 4.4% as well as alcoholic beverages and tobacco prices, which went up by 4.2%.

Prices of food and non-alcoholic beverages, which are the main driver of the inflation, were higher by 2.2% y/y.

One group registered a decrease in July – the IT sector, by 0.5% y/y.

The retail price index grew by 5.4% y/y and was 2.3% higher on a monthly basis in the seventh month of the year.