Food prices increased by 5.1 per cent, petrol by 9.3 per cent and electricity by 10.0 per cent in the year to August. Core inflation, as measured by the exclusion of food, petrol and electricity from CPI measured 4.6 per cent, up from 4.5 per cent in July. Administered prices excluding petrol increased at a year-on-year rate of 7.5 per cent.
The inflation forecast of the Bank reflects a moderate deterioration for 2013 compared with the previous forecast, and a relatively flat trajectory over the entire forecast period. Inflation is now expected to average 5.3 per cent in the final quarter of 2012 and 5.6 per cent for the year, 5.2 per cent in 2013, and 5.0 per cent in 2014.