Consumer inflation down to 6,7% in July 2009

There were no real surprises in the consumer inflation data released today. CPI moderated from an annual increase of 6,9% in june 2009, to 6,7% in July, and is not expected to breach the upper 6% target any time soon this year, despite contracting demand for goods and services. The price of food and services are likely to keep consumer inflation above the 6% target.  On average, prices increased by 1,1% between June 2009 and July 2009, mostly due to the 0,7% increase in housing and utilities (mainly due to a 21,5% increase in electricity and a 8,8% increase in water services during the month of July) and a 0,3% increase in goods and services (related to an increase in insurance and financial services).