New Inflation Figures Released: Food Prices Drive 5.3% Increase in July 2025
Yesterday, the latest inflation figures were announced, revealing a 5.3% increase in prices in July 2025, down from 5.4% the previous month. This decline is primarily attributed to the slowdown in the evolution of food prices, which dropped by 50 basis points to 5.9% over the year. As the largest component of the index, accounting for 26.2%, food prices have a significant impact on the overall inflation rate.
The 5.9% increase in food prices is driven by:
- A 25.3% surge in fresh vegetable prices
- A 19.1% increase in ovine meat prices
- A 15.1% rise in fresh fruit prices
- An 11.0% increase in fresh fish prices
On the other hand, prices of food oils decreased by 22.9%, and egg prices dropped by 4.7%. It's no wonder that citizens struggle to understand a single inflation figure, given the varying price trends across different food categories.
Over the past year, manufactured product prices have risen by 5.3%, driven by a 9.2% increase in clothing and footwear prices, as well as a 5.3% rise in household maintenance products. Service prices have also increased by 4.7% over the year, primarily due to an 11% surge in restaurant, café, and hotel prices.
In July 2025, the underlying inflation rate (excluding food and energy) edged up to 5.6%, from 5.5% the previous month. Prices of free products (not subject to price controls) have risen by 6.3% over the year, while controlled products have increased by 1.8%. Free food products have seen a 6.7% price hike, compared to a 0.5% increase for controlled food products. This suggests that if the state had not continued its policy of subsidizing basic goods, prices would have reached a different level.
