In July, the CPI increased by 2.13% compared to December 2024 and by 3.19% year-on-year. Of the 11 major commodity and service groups, 9 experienced price hikes while 2 saw declines.

The group with the highest impact was housing, electricity, water, fuel, and construction materials, which rose 0.36%, contributing 0.07 percentage points to the overall CPI. Key drivers included higher prices for housing maintenance materials due to limited supply and rising production and transport costs; increased electricity prices driven by heatwave-induced demand, especially in the northern and central regions; and a 2.64% increase in kerosene prices due to multiple price adjustments during the month.

In contrast, some groups recorded price decreases in July. Rental prices fell by 0.45% as the month coincided with summer vacation, leading many students to return home and prompting landlords to lower prices to retain tenants. Gas prices dropped by 3.33% as global contract gas prices fell by USD 25 per ton, from USD 585 to USD 560 per ton.

The CPI in June and the second quarter increased by 3.57% and 3.31% respectively, compared to the same periods in 2024.

The beverages and tobacco group rose by 0.25% due to increased consumption during the summer and rising production costs.

Cultural, entertainment, and tourism services went up 0.20%. However, some items in this category saw price declines, including sports equipment and children's toys.

Other groups also experienced increases: food and dining-out services rose 0.18%, household equipment and appliances climbed 0.10%, clothing and footwear edged up 0.06%, and education increased marginally by 0.01%.

In the healthcare and medical services group, the CPI rose 0.03%, influenced by currency exchange rate fluctuations that drove up the cost of importing pharmaceuticals and raw materials. Specific items contributing to the increase included medical tools, vitamins and minerals, nonsteroidal anti-inflammatory drugs, gout and bone disease medications, anti-infective drugs, antiparasitic treatments, respiratory system medicines, and gastrointestinal drugs.

The two groups that saw CPI declines were postal and telecommunications services, down 0.15%, and transportation, down 0.48%.

Core inflation in July rose by 0.21% from the previous month and by 3.3% year-on-year. On average, core inflation for the first seven months of 2025 increased by 3.18% compared to the same period in 2024. This was lower than the overall average CPI rise of 3.26%, primarily because core inflation excludes food, energy, medical, and educational services - sectors that saw significant price increases.

PV