Inflation to ease to 19% in September 2024

IC Research predicts inflation to decline to 19.0% year-on-year in September 2024, while month-on-month inflation is expected to rise to 0.7%. This follows a surprise drop in headline inflation to 20.4% in August, contrary to market expectations.

A deflation of 0.7% month-on-month in August was driven by a 2.2% decrease in food prices. The August deflation marks the fifth consecutive month of declining annual inflation, the lowest since March 2022.

IC Research anticipates further disinflation due to lower energy prices, FX stability, and improved food supplies, barring election-related demand pressures or food price shocks.

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