Inflation continued its downward trend in August to 5.4% from 5.7% in July and 5.8% in June, according to data published by the National Institute of Statistics (INS).
This drop in inflation is the result of the slowdown in the rate of increase in the prices of food, alcoholic beverages and tobacco.
Indeed, in August 2020, food prices rose by 3.9% year-on-year compared to 4.0% in July 2020.
The increase during this month is explained by the rise in prices of vegetables by 6.9%, jams, honey, chocolate and confectionery by 6.5%, and meat by 5.7%.
On the other hand, olive oil prices have decreased by 13.2% over a year.
Over one year, service prices have increased by 5.8%. This rise is explained by the increase in transportation services by 7.3%, health services by 6.5%, rent prices by 5.4% and miscellaneous services by 7.8%.
Core and administered product inflation
Core inflation (excluding food and energy) dropped to 6.8% after 7.2% the previous month. Prices of free (non-administered) products rose by 5.2% compared with 5.9% for administered prices.
Moreover, free food products increased by 3.8% compared to 4.4% for administered food products.