Inflation up by 8.8 percent

Alcohol and education top price fluctuation

The Consumer Price Index (CPI), published by the Central Administration of Statistics, said the inflation rate rose by 8.8 percent year-on-year at end-June. The CPI measures and tracks fluctuation in prices of a basket of goods over time.

The prices of alcoholic beverages and tobacco witnessed the highest increase, up by 14 percent year-on-year. Prices of food and non-alcoholic beverages increased by three percent.

Naji Hmouda, Alcoholic Beverages, Wines, and Araks Manager at Fattal, said that prices of alcoholic beverages did not rise at the level of suppliers. They remained almost flat due to lower consumer spending on luxuries, caused by the high cost of living. Smuggled alcoholic beverages are also negatively affecting local consumption.

The cost of education also increased remarkably, growing by 14.6 percent. Costs of electricity, water, and fuel grew by 7.4 percent.

Despite the economic crisis and low tourist rates, leisure costs grew by 4.7 percent, in parallel with a 5.8 percent increase in the cost of restaurants and hotels.

These increases were partially offset by a four percent drop in clothing and transportation prices, down by 2.5 and 3.2 percent respectively.

Communication costs remained untouched compared to last year.