The disinflationary pressures continued to build in July, with both headline and core CPI increasing by a moderate 0.2% m/m. Admittedly, the annual headline inflation rate actually ticked up to 3.2%, from 3.0%, while the core rate only edged down to a still high 4.7%, from 4.8%. But those rates mostly reflect the still high rates of lagging shelter price inflation. Stripping out shelter as well, core prices fell by 0.1% m/m last month and the annual inflation rate was only 2.5%.
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