Overshadowed by last week’s release of GDP data were five (count’em, five) other important data releases, one of which was the report on July consumer prices. Needless to say, the report showed accelerating price increases (log annual and monthly changes; 2000=100):
On an annual basis, CPI inflation ticked up to 2.0%, with the impetus mainly coming from higher food prices…again (log annual and monthly changes; 2000=100):
Food price increases are running at close to 4.0%, or nearly twice as fast as the overall CPI. On a monthly basis, food prices have not stopped increasing since CNY.
We’re still likely to see full year 2013 inflation come in well below BNM originally forecast, but since nominal income growth is slowing that’s probably cold comfort.
July 2013 Consumer Price Index report from the Department of Statistics