The increase in food and foodstuff prices in localities implementing social distancing in accordance with Directive 16 to prevent and control Covid-19 is the main reason for the increase in the consumer price index (CPI) in August 2021.
In the first 8 months of 2021, CPI generally increased 1.79 percent over the same period last year.
Specifically, in August, prices of four groups of consumer goods and services increased compared to the previous month whereas prices of four other groups decreased. Prices of three groups comprising of houses and construction materials, household appliances, daily necessities, and services remained unchanged.
Among the four groups of goods whose prices increased, food and catering services saw the highest increase compared to the previous month, up to 0.74 percent causing an increase in the overall CPI by 0.25 percentage points. This is due to difficulties in transportation and distribution of goods due to stricter social distancing rules for the fight against Covid-19. People in districts where social distancing mandate has been applied tended to store more food.
The price of beverage and tobacco group increased by 0.22 percent compared to the previous month, mainly due to hot weather and the high demand for beverage consumption. The price of cigarettes surged owning to reduced supply. The education group increased by 0.04 percent as sales of stationery increased by 0.34 percent. Cost of drugs and medical services increased by 0.02 percent with a leap of prices of all drugs by 0.08 percent
Transport fees are an example where expenditure has declined by 0.06 percent from normal levels compared to the previous month, mainly due to the decrease in sales of new and used cars by 0.09 percent and 0.84 percent respectively. The postal and telecommunications group fell by 0.05 percent as prices of smart mobile phones and tablets decreased by 0.16 percent and accessories for smart mobile phones and tablets fell by 0.5 percent.
Other recreational, cultural services, and tourism affected by the Covid-19 epidemic saw a decrease of 0.03 percent compared to the previous month. The group of garments, hats, and footwear decreased by 0.03 percent due to the implementation of social distancing mandate to prevent and control Covid-19.
