Monthly deflation is largely the result of a 17.6% fall in the prices of clothing and footwear. These contributed 1.3 percentage points to the deflation.

Prices of fruit and vegetables also dropped, by 6.5% and 4.3%, respectively, which is another seasonal occurrence.

Meanwhile, notable increases were recorded on a monthly level in the prices of package holidays (+10.2%, health insurance (11.1%), and tobacco (3.4%).

Higher prices of package holidays pushed inflation up by 0.3 percentage points and health insurance by 0.2 percentage points.

The biggest price increase year-on-year was registered in alcoholic beverages and tobacco (+7.4%). Food and non-alcoholic beverages followed with 4.1% and housing with 3.9%.

Consumer prices increased by 1.1% from the start of the year until the end of July, which compares to 0.7% in the same period last year.

Measured with the harmonised index of consumer prices, an EU-compatible gauge, consumer prices decreased by 0.8% in July but increased by 2.6% at the annual level.

Eurostat said today in a preliminary report that inflation in the eurozone was unchanged at 2.4% in July.