Overview

• Core consumer prices excluding fresh food rose 3.1% year on year in July to 111.6, down from 3.3% in June for a second straight slowdown.
• Food was the main driver of inflation, led by a 90.7% jump in the rice category.
• The reported rice index reflects branded rice prices because government-released reserve rice sold by discretionary contracts is not counted.
• Gasoline prices fell 1.3%, with subsidies helping to curb fuel costs and moderate the headline reading.
• Nationwide supermarket sales in July increased 3.1% on an existing-store basis, with higher food prices and substitution toward bread and pasta as rice rose in cost.