On a monthly basis, prices increased by 2.1 percent, a sharper rise compared to the 0.4-percent growth in July. Food prices, which had decreased by 0.3 percent in July, jumped by 1.8 percent in August and were 29-percent higher than the previous year.
Analysts had forecasted inflation to ease to a median of 25.1 percent for August, but Sara Saada from CI Capital accurately predicted an acceleration. She noted that energy price hikes announced in late July, especially for diesel, had widespread effects, contributing to the inflation increase.
Price hikes were driven by more expensive summer produce, fuel increases of 10-15 percent at the end of July, a 25-33 percent rise in metro ticket prices in early August, and a 21-31 percent rise in electricity tariffs in August. Although inflation had been declining from a record high of 38 percent in September, the central bank's real overnight borrowing rate of 27.25 percent turned positive in July for the first time since January 2022.
