Inflation reaches annual low in June

Monthly inflation in June hit 0.28%, the lowest level of the past year, which drove annual inflation to 8.61% and analysts believe that trend is in line with expectations, whilst the only products that posted uncharacteristic increases were fresh fruit. Prices advanced at a slower pace (0.14%) in June 2007. In the same month food prices climbed by 0.32%, whilst fresh fruit posted the fastest growth rate in this category (7.7%) according to data from the National Statistics Institute. However, the weight of fresh fruit in the consumer price index stands at only 1.05%. According to INS data, the annual rate of inflation in June reached 8.61%, in line with market expectations. The level was higher than the 8.46% level in May and came close to the last two years’ high of 8.63%, posted in March.