December 2024 Inflation Rate: A Mixed Bag
Annual Inflation Rate Down to 6.2%, but Prices Continue to Rise
The latest inflation figures for December 2024 are in, and they show a mixed trend. Compared to November, the annual inflation rate has decreased by 40 basis points to 6.2%. This decline is largely attributed to the downward trend in food prices, which fell from 8.5% to 7.2% in December 2024.
However, prices continued to rise, albeit at a slower pace. Food prices, in particular, remained on an upward trajectory, driven by increases in:
- Ovine meat (+21.3%)
- Poultry (+19.7%)
- Dried fruits (+14.8%)
- Fresh vegetables (+14.2%)
- Fresh fish (+12.8%)
- Beef (+9.2%)
The only exception was edible oils, which decreased by 8.3%.
Manufactured product prices rose by 6.1%, led by increases in:
- Clothing and footwear (+9.7%)
- Household maintenance products (+7.8%)
Service prices increased by 5.4% over the year, primarily driven by a 11.7% hike in restaurant, café, and hotel services.
Underlying Inflation and Price Trends
The underlying inflation rate (excluding food and energy) stood at 6.3%. Prices of free products (not regulated) rose by 6.9% over the year, while regulated products saw a 3.8% increase. Free food products experienced an 8.1% hike, compared to 1.3% for regulated food products.
Monthly Price Changes
Compared to November, consumer prices rose by 0.2% in December. This increase was mainly driven by:
- Clothing and footwear prices (+1.7%)
- Restaurant, café, and hotel services (+0.8%)
Food prices, on the other hand, decreased by 0.6%.
Annual Inflation Rate for 2024
For the entire year 2024, the inflation rate stood at 7%, down from 9.3% in 2023. While the trend is positive, we are still far from reaching the desired level and, more importantly, the level that would allow for a decrease in the benchmark interest rate.
