• Excluding the most volatile products, core inflation remains stable for the third consecutive month
  • Tourism and hospitality increases 0.8%, two tenths more, due to organized trips
  • The differential with the euro area improves two tenths and stands at 0.8 points, which favors competitiveness

The Consumer Price Index (CPI) decreased by 0.4% in November in the interannual rate, according to figures published by the National Statistics Institute (INE), in line with what was advanced in late November. The reduction is three tenths higher than that of October, an evolution that is explained by the more volatile components of the CPI, energy products and unprocessed food, especially the former. In relation to the previous month, the general CPI decreased 0.1% in November, compared to the 0.2% increase registered in the same month of 2013.

The prices of energy products registered a negative interannual rate in November of -3.2%, compared to the 1.1% decrease of the previous month. Its main components, fuels and fuels and the electricity tariff have contributed to this intensification of the fall. Fuels and fuels have increased the year-on-year drop rate by 1.2 points, to 4.5%. The annual rate of the electricity tariff has gone from growing by 4.9% in October to 0.3% in November, as a result of a monthly drop of 4.4% in November of the current year compared to a stabilization in the same month of 2013.

The year-on-year rate of change in the prices of unprocessed food decreased by half a point in November, to 1.2%, a slowdown that responds to shipments of fresh vegetables, fresh and frozen fish, poultry and fresh fruits .

Core inflation (excluding the most volatile CPI elements, fresh food and energy) remained at -0.1% in November, for the third consecutive month. This stability is explained by the behavior of BINES (non-energy industrial goods) and processed food, which maintained their annual rate at -0.3% and -0.2%, respectively, while service inflation rose by tenth, up to 0.2%.

Within the services group, the slight increase in inflation derives, mainly, from the heading of tourism and hospitality, whose annual rate has gone from 0.6% in October to 0.8% in November. This acceleration is explained, in turn, by the upward evolution of the organized travel item, which has grown by 3%, 2.8 points more than in the previous month. In contrast, interurban public transport moderates its annual rate of change by two tenths, to 0.7%.

BIN prices maintain their rate at -0.3%, for the third consecutive month, with a slight acceleration in clothing and footwear and automobiles, one tenth in both. Processed food, including beverages and tobacco, registered an annual rate in November of -0.2%, equal to that of the previous three months, stability that is explained by an increase in shipments of oils, mineral water and soft drinks and juices, It compensates for the moderation in milk and milk products and sugar.

In month-on-month terms, the CPI decreased 0.1% in November, compared to the 0.2% increase of the same month last year. This decrease is explained by the lower prices of energy products, unprocessed food and services, partially offset by the increase in the prices of BINES and, to a lesser extent, of processed food. The prices of unprocessed food decreased by 0.5% compared to the month of October, mainly due to the decreases in fresh fruits and fresh vegetables. The prices of processed food increased slightly, 0.1%, due to the higher prices of oils and fats.

Energy products registered a 2.9% month-on-month drop in November, as a result of a 4.4% decrease in the electricity tariff and 2.3% in fuel and fuel. BIN prices increased 1.5% compared to the previous month, due to the seasonal increase in clothing and footwear (5.1%) and the slight increase in the price of automobiles (0.1%).

The prices of services fell by 0.2% in the month-on-month rate, a drop that is mainly explained by the heading of tourism and hospitality (-0.7%). Within this heading, the decrease in the price of organized trips (-2.6%) and of hotels, cafes and restaurants (-0.5%) stands out, as well as the stability in the prices of urban public transport. and the intercity.

Of the 17 autonomous communities, six registered interannual inflation rates above the national average in November: the Balearic Islands, Catalonia and the Basque Country (-0.1%) and Galicia, La Rioja and Navarra (-0.3%). Castilla y León and the Community of Madrid presented the same rate as the national average (-0.4%) and the rest of the communities had lower rates than the average.

The annual rate of the CPI for constant taxes stood at -0.4% in November, as did the general CPI, three tenths lower than the previous month. The INE has also published the harmonized CPI (IPCA) for November, whose annual rate stands at -0.5%, compared to -0.2% the previous month. If this rate is compared with that estimated by Eurostat for the euro area as a whole in November (0.3%), the inflation differential favorable to Spain improves two tenths and stands at 0.8 percentage points.

In summary, the inflation rate has decreased in November due to the evolution of the prices of energy products and unprocessed food, while core inflation remains stable. The inflation differential continues to be favorable to Spain vis-à-vis the euro area, which is making it possible to obtain competitiveness gains and boost our exports.

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