Consumer prices rose 0.23% in June from the previous month after rising 0.12% in May. Looking at the details of the release, faster increases in food and transportation prices were largely responsible for the acceleration.
Inflation in June was 2.3% compared to 2.2% in May. The June figure represents the highest inflation rate since June 2021. Meanwhile, the trend is down slightly, with average annual inflation of 1.4% in June (May: 1.6%).
Inflation should pick up in the second half of the year due to rising commodity prices, supply problems and rising domestic demand. However, it must remain subdued compared to other Middle Eastern countries due to government subsidies. In particular, the government has pledged to cap gasoline prices when oil prices top $70 a barrel late last year, limiting the impact of rising fuel prices on domestic inflation.
FocusEconomics experts predict inflation to average 2.4% in 2022, which is 0.1 percentage points lower than the previous month’s forecast. In 2023, the group forecasts inflation at 2.2%.