Inflation down to 0.7%, according to HCP

Inflation down to 0.7%, according to HCP
Inflation down to 0.7%, according to HCP

According to the High Commission for Planning (HCP), inflation, measured by the consumer price index, would have fallen by almost half in the second quarter of 2024 compared to the first quarter, standing at 0.7% instead of 1.2%.

This decline would have resulted from the 0.5% drop in the prices of food products, while those of non-food products would have, conversely, accelerated by 1.5%, after +0.9% in the first quarter, explains the HCP in its economic update for the second quarter of 2024 and the outlook for the third quarter of 2024.

Core inflation, which excludes state-set prices and volatile products, also fell from 2.5% to 2.2%, due to lower prices for food and manufactured products, the HCP said.

The fall in the prices of fresh food products would have been the main driver of the decline in overall inflation, with a contribution of -0.8%, instead of -0.5 in the previous quarter, notes the same source.

This decline would be attributable to the decrease in the prices of fresh vegetables and citrus fruits, after the strong increases observed in the same quarter in 2023. The prices of eggs, poultry and cooking oil would also have decreased.

However, some food items, such as fruits, red meat and spices, are said to have seen their prices increase, due to the drought and rising production costs.

As for the prices of non-food products, they would have experienced an upward turnaround, after several quarters of decline, mainly due to the increase in energy inflation of 4.2%, linked to the adjustment of gas and fuel prices.

Prices of manufactured goods would have continued to fall slightly, while those of services would have remained stable.

For the third quarter of 2024, inflation is expected to remain broadly stable, reaching around 0.8% for headline inflation and 2.1% for core inflation, supported by reduced inflationary pressures in the food and non-energy sectors.

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