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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