Consumer prices rose 0.77% from the month before July, accelerating from the 0.59% increase in June. The July rally was the strongest price increase since March. Looking at the details in the release, house prices rose at a faster pace in July than the previous month, which more than offset the price pressures from declining clothing and footwear.
Inflation rose to 9.6% in July from 9.3% in June. The July reading represented the highest inflation rate since November 2020. As a result, the trend has increased, with average annual inflation standing at 8.6% in July (June: 8.4%) .
FocusEconomics analysts see inflation closing 2022 at 8.8%, up 0.2 percentage points from the previous month’s forecasts. In 2023, our panel sees inflation ending the year at 7.2%.