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Inflation slows to 4.2% y-o-y in June


The consumer price index (CPI) amounted to 4.2% y-o-y in June, a sharp deceleration compared with the previous month, the Central Statistical Office (GUS) reported. The result was well below market expectations, which averaged 4.7% y-o-y.

The highest increases in the 12 months to June were noted in food and non-alcoholic beverages and in transport (a category that includes car fuel), where prices went up by 6.4% y-o-y, followed by housing and energy (up by 5.8% y-o-y). In hotels and restaurants prices went up by 4.5% y-o-y, in health by 4.2% y-o-y, in alcoholic beverages and tobacco products by 3.6% y-o-y, and in education by 2.5% y-o-y. Price increases of less than 1% y-o-y occurred in clothing and footwear (up by 0.9% y-o-y) and in recreation and culture (up by 0.2% y-o-y). Communication charges were down by 3.6% y-o-y.

On a month-on-month basis the CPI was -0.4% in June, the first negative reading since August 2010.

In the first six months of the year consumer prices rose by 4.2% y-o-y.

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