The trend has prompted the agency to advise businesses to prioritize local supply chains for food, packaging, and logistics inputs to hedge against global disruptions.

In its June Consumer Price Index report released July 5, GSS noted a rare 1.2% month-on-month deflation—the first significant drop in over a year. Core inflation, excluding volatile energy and transport costs, plunged to 8.3% from 19.5%, signaling what officials termed a “sustained shift” in price stability. Food inflation eased to 16.3% (from 22.8%), while services saw the steepest monthly decline at 3.3%.

Despite cooling prices, GSS cautioned against aggressive price hikes, urging “strategic pricing” instead: “Consumers remain highly sensitive to costs amid deflation.” The data suggests a pivotal moment for retailers and manufacturers to recalibrate sourcing, stabilize margins, and build long-term consumer trust through local procurement.