Alphacast High Frequency CPI - August 10th to 16th 2026

Alphacast High Frequency CPI: Inflation was 0.23% WoW

Weekly inflation decelerated in the second August reading. Consumer prices rose 0.23% WoW, down from 0.40% in the previous week. The monthly run rate also eased, declining to 1.5% MoM from 1.7%, while annual inflation fell further to 31.7% YoY from 32.0%.

The weekly slowdown was driven by softer seasonal and core price dynamics, while regulated prices accelerated slightly. Seasonal prices rose 0.29% WoW, down from 0.64% in the previous week, while their monthly run rate edged lower to 2.5% MoM from 2.6%. Core inflation slowed to 0.17% WoW from 0.42%, with its monthly pace remaining stable at 1.7% MoM. In contrast, regulated prices increased 0.32% WoW, slightly above the previous week's 0.27%, although their monthly run rate continued to ease, falling to 0.8% MoM from 1.1%.

Overall, the second August reading showed a moderation in weekly inflation after the acceleration observed at the beginning of the month, mainly reflecting weaker seasonal and core price increases. At the same time, the headline monthly run rate continued to decline, supported by the ongoing moderation in regulated prices. Annual inflation also extended its downward trend, reaching 31.7% YoY.

Methodological update

Weeks ago, Alphacast updated the methodology of its High-Frequency Inflation Index. The price sample was expanded by more than 300%, while estimates for the previous 12 months were revised following improvements in price sampling and classification procedures. These changes are strictly statistical rather than econometric and do not modify the underlying conceptual framework of the index.

As a result, the root mean squared error declined from 0.45 pp to 0.29 pp for headline inflation and from 0.71 pp to 0.46 pp for core inflation. This represents a reduction in estimation error of approximately 35% and 36%, respectively.

To illustrate the impact of the methodological update, under the previous methodology July headline inflation would have been estimated at 1.22% MoM, compared with 1.73% MoM under the updated methodology. Similarly, core inflation would have been estimated at 0.93% MoM, compared with the current estimate of 1.59% MoM. This represents an upward revision of approximately 0.52 pp for headline inflation and 0.66 pp for core inflation.

These differences reflect the expansion of the price sample and improvements in sampling and price-classification procedures, rather than a change in the underlying price dynamics observed during the month.

Sources

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