Fight against food inflation not yet over

In June, inflation cooled to 4.6 percent continuing within the central bank’s objective range and representing a 22-month low. Inflation has been declining in recent months due to decelerating food and fuel prices, as well as the base effects associated with increases in fuel prices last year.

In the calculation of annual inflation, base effects relate to inflation in the corresponding period of the previous year, which if abnormally high, distorts the measurement of inflation in the current period.