Consumer prices increased 0.77% over the previous month in July, accelerating from June’s 0.59% rise. July’s uptick was the strongest increase in prices since March. Looking at the details of the release, housing prices rose at a quicker pace in July compared to the previous month, which more than offset price pressures for clothing and footwear dropping.
Inflation ticked up to 9.6% in July from June’s 9.3%. July’s reading represented the highest inflation rate since November 2020. Consequently, the trend pointed up, with annual average inflation coming in at 8.6% in July (June: 8.4%).
FocusEconomics analysts see inflation ending 2022 at 8.8%, which is up 0.2 percentage points from the previous month’s forecast. In 2023, our panel sees inflation ending the year at 7.2%.