June inflation was negligible, thanks to a slowing economy

Inflation in June was negligible, just .02 of a percent, according to figures provided by the Banco Central.

That brought the accumulated inflation for the year to 3.24 percent, according to INS Valores Puesto de Bolsa, S.A. which keeps track of these types of data.

The Bolsa said that the low inflation was an indication that the economy was decelerating and that prices were expected to stabilize for the remainder of the year.

The data also shows that private employees received a pay increase less than inflation. The Consejo Nacional de Salarios ordered a 2.4 percent increase in the minimum wages for the second half of the year.

The report of the inflation for the year is likely to have an effect on negotiations with the government and public employees.

The Bolsa said that food and non-alcoholic drinks had a negative effect on inflation. Prices of tomatoes, rice, powdered milk, among others, declined, it said. Rents appeared to be higher, it added.

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