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|
|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|
|Recreation and culture||2.1||3.3||3.5||3.7||3.8||1.1||-0.3||-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|
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