Skopje, 11 August 2022 (MIA) - Average inflation was 10.9% from January to July 2022 with rising food and energy prices having the largest share of three quarters. The dynamic of the inflation is still mainly a reflection of factors by the supply, i.e. the increase in export prices of food and energy, including the domestic price of electricity due to the developments on the global energy market, says the National Bank. Given the duration of these trends, it adds, such pressures are quickly spilled over the prices and other products and services additionally fueling inflationary expectations, which points out the need for conducting cautious domestic policies. However, the monthly change of consumer prices shows some slowdown and a majority of the monthly growth is also due to the decision for changes in the regulatory electricity price. At the same time, the annual dynamic of the basic inflation remained stable. Also, the latest data and expectations on global markets hint at gradual easing of price pressures, i.e. food price expectations have been revised downwards, whereas oil prices are expected to stabilize by the end of 2022 before dropping. Yet, supply risks, especially in terms of future trends of food and energy prices continue to be significantly expressed due to the war in Ukraine, which leaves large uncertainty as regards the effects transferred on the domestic inflation. The costs of living in July this year compared to July last year increased by 16 percent, and retail prices recorded a growth of 14 percent, according to data of the State Statistical Office. Compared to June 2022, costs of living rose by 1.9 percent and retail prices by 2.5 percent.