Food and drink prices drive July inflation

The overall harmonised index of consumer prices (HICP) rose by 2.4 per cent in July year-on-year driven by higher prices in food and non-alcoholic drinks, the statistical service said on Friday.

Between June and July this year, food and drink prices rose 1.4 per cent. In July they went up 10.4 per cent over July 2022 and have increased 9.1 per cent since the beginning of the year.

Overall, for the period January-July 2023 the HICP rose by 4.6 per cent compared to the corresponding period of the previous year.

The HICP in the euro area is based on Eurostat’s Eurostat’s flash estimates.

While the statistical service pointed to the hike in the price of food and non-alcoholic beverages of 10.4 per cent in July, it also said that transport costs had fallen 6.5 per cent.

Between June and July, the price of clothing and footwear also showed a significant increase of 11.8 per cent but calculated from the beginning of the year, this category went up 2.9 per cent.

For the period January-July, compared to the corresponding period of the previous year, the other biggest change observed besides food and drink was in the category of housing, water, electricity, gas, and other fuels, which rose by 7.8 per cent. In the same period, prices at hotels and restaurants also went up, by 6.7 per cent.

Elsewhere, health costs rose 1.5 per cent since January, alcohol, and tobacco by 2.7 per cent, furniture, and household equipment by 6.1 per cent, and recreation and culture by 4.5 per cent.

Communications costs fell by 2.3 per cent since January.