• Core inflation rises one tenth and stands at 1% in November
  • The differential with the euro zone remains favorable to Spain and stands at half a point

The Consumer Price Index (CPI) decreased 0.3% in November on a year-on-year basis, according to data published by the National Statistics Institute (INE). This rate is four tenths higher than that of October and coincides with that advanced by the INE at the end of last November. The main components of the CPI that have contributed to this increase are energy products and non-energy industrial goods (BINE).

The prices of energy products registered an interannual rate of -10% in November, compared to -13.1% in the previous month. This lower fall was due to fuels and fuels, which slowed the annual rate of decline by almost two points, to 13.7%. Electricity also influenced, which experienced a year-on-year increase of 0.4%, after the 6.4% decline in the previous month.

The interannual variation rate of total food prices moderated one tenth in November, to 1.7%. This was due to unprocessed food, whose rate was reduced by three tenths, up to 2.4%, mainly due to the slowdown in the departure of fresh vegetables (4.4%, compared to 8.3% in the previous month ). On the other hand, the annual rate of processed food, beverages and tobacco remained at 1.4% for the fourth consecutive month. Oil continues to be the most inflationary item in this group, with an interannual increase of 28.3%, although this rate is moderating in recent months.

Core inflation (which excludes the most volatile elements of the CPI, such as fresh food and energy) increased in November one tenth, to 1%. This slight increase is explained by the prices of the BINE, whose annual rate increased by one tenth, to 0.7%, while the inflation of services remained at 1%. The acceleration of the BINE was, in turn, due to the evolution of the price of cars, whose annual rate increased four tenths, up to 3.9%. Among services, the acceleration of two tenths in the tourism and hospitality item stands out, generated in turn by the behavior of organized travel prices, which accelerate 1.7 points to 4%. On the contrary, it affected the fall of 2.5 percentage points in the rate of interurban public transport (-0.6%). This last fall is explained by the collapse of air transport (almost six points, up to -1.9%).

In inter-monthly terms, the general CPI and the underlying CPI increased 0.4% in November. The rise in the general index is explained by the 1.5% increase in BINE, especially the rubric of clothing and footwear, which shows a monthly increase of 5.1%, of cars (0.5%) and 0 , 7% of energy products, mainly for electricity (2.6%). Processed food (0.1%) has contributed to this increase, especially the oil item (1.5%).

The annual inflation rate increased in November in all the Autonomous Communities, although it maintains negative rates in all of them, except in the Balearic Islands, where it was slightly positive (0.1%) and in Catalonia, where it was zero. Of the rest, those that presented the highest annual rate of the CPI were Comunidad Valenciana, La Rioja and País Vasco (-0.1% in all of them), followed by the Community of Madrid (-0.2%). Those with the lowest rates were Castilla-La Mancha, Castilla y León and Cantabria (-0.7% in all of them). On the other hand, the annual rate of the CPI for constant taxes stood at -0.3% in November, the same as that recorded by the General CPI.

The INE has also published the harmonized CPI (IPCA) corresponding to the month of November, whose annual rate is -0.4%, five tenths above that of the previous month. If this rate is compared with that estimated by Eurostat for the whole of the euro zone in November (0.1%), the inflation differential favorable to Spain moderates half a point, up to 0.5 percentage points.



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