Warm weather brought elevated prices

Analysts were somewhat surprised by the moderate increase in inflation in June. According to KSH’s quick report, consumer prices climbed by 0.2 percent from May and were 5.3 percent higher than in last June. In the first half of 2010 prices were 5.7 percent higher on average than in the same period of 2009. In June food prices were up 0.8 percent, mostly because of the 7-percent increase in seasonal product prices. Looking back on the last twelve months, we can see that food prices elevated by 1.1 percent on average.