Montenegro's CPI inflation quickens to 2.7% y/y in July 2013

By bne IntelliNews August 15, 2013

Montenegro's CPI accelerated to 2.7% y/y in July from 2.2% the month on higher food, alcoholic beverages and health prices, data from the statistics office showed. The VAT hike from 17% to 19% starting July 1 as well as higher consumption due to the peak tourism season also helped fuel CPI inflation during the month.

In monthly terms, CPI edged up 0.7% after recording 0.0% m/m growth in June.

Food prices (38.6% of the CPI basket) rose 6.0% y/y in July, speeding up from a 4.5% increase a month earlier due to higher fruit and vegetables costs. Alcoholic beverages charges recorded a 4.4% monthly growth in July lifting the annual growth to 6.8% y/y in July from 2.3% the month before.

Housing and utilities prices rose 2.8% y/y in July slowing from a 3.4% increase a month earlier dragged down by falling rentals and solid fuels charges.

Furnishing and household equipment charges deflation deepened to 1.5% y/y in July from 1.4% the month before. Clothing and footwear likewise dropped 1.8% m/m and 2.7% y/y in July for seasonal factors. Transport prices (10.1% of the CPI basket) recorded 0.0% annual growth following a 1.5% y/y decline in June.

Prices of restaurants and hotels fell 4.0% y/y in July on lower catering and accommodation services costs.

Montenegro's CPI inflation,% 2012/2011 Jan-13 Feb- 13 Mar-13 Apr-13 May-13 Jun-13 Jul-13
TOTAL 4.1 4.2 3.3 3.3 3.2 3.0 2.2 2.7
Food and non-alcoholic beverages 4.2 7.1 5.6 4.7 5.4 6.3 4.5 6.0
Alcoholic beverages and tobacco 16.7 4.1 1.6 0.8 0.6 2.5 2.3 6.8
Clothing and footwear 0.0 1.4 3.4 8.4 9.4 2.3 -0.7 -2.7
Housing, water, electricity, gas and other fuels 9.8 8.1 4.3 5.0 4.4 4.4 3.4 2.8
Furnishings, household equipement and routine hous.maintenance -0.1 -3.0 -2.9 -2.2 -2.8 -1.4 -1.4 -1.5
Health 3.4 0.9 1.6 1.9 2.1 1.7 2.0 2.4
Transport 2.7 0.6 1.2 -0.1 -4.6 -4.4 -1.5 0.0
Communications 2.3 3.4 3.4 3.5 3.4 2.0 2.0 -0.8
Recreation and culture 2.1 3.3 3.5 3.7 3.8 1.1 -0.3 -0.2
Education -0.2 0.0 0.0 0.0 0.2 0.2 0.2 0.2
Restaurants and hotels 3.6 1.8 1.8 1.9 1.7 -1.1 -3.1 -4.0
Miscellaneous goods and services -0.3 -2.2 -4.0 -2.3 1.1 3.1 2.7 3.3
Source: Monstat                

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