The Consumer Price Index (CPI) increased 0.4% in April in the annual rate, half a percentage point more than in March, according to data published by the National Statistics Institute (INE). This rise responds to energy products and services. The different calendar of Easter in the case of services and the base effect on that of energy products explain this upward trend. The rest of the major components of the CPI have moderated their annual rate, four tenths in processed food, half a point in fresh food and one tenth in Non-Energy Industrial Goods (BINES). In relation to the previous month, prices have increased by 0.9%.

The prices of energy products have registered an annual rate of 1.6% in April compared to -1.4% last March. This increase is a consequence of the fact that last year prices decreased compared to March and in the current year they have slightly increased in fuels and fuels or have not changed in the electricity rate. Fuels and fuels have increased 1.9 percentage points in their year-on-year rate of change, down to -1% and the annual rate of electricity has increased from 2.6% in March to 9.4% in April.

The annual rate of unprocessed food prices fell 0.5 percentage points in April to -0.5%. This sharp slowdown is due to potatoes and their preparations, whose annual rate has moderated from -0.5% in March to -3.4% in April. Also to fish, which reduces its annual rate by almost two percentage points, to 0.7%. Other items such as fresh legumes and vegetables and crustaceans and molluscs have also contributed to this moderation. On the contrary, it is worth noting the acceleration in sheep meat prices, which have increased their annual rate by one percentage point, to 2.3%, and more modestly, poultry meat.

Core inflation or more stable price nuclei increased in April by three tenths, to 0.3%. This acceleration is a consequence of the upward behavior of the prices of services and, in particular, of its main heading, tourism and hospitality, although it has been partially offset by the moderation of processed food and BINES.

Services increased their annual rate in April by seven tenths, up to 0.5%, largely due to the heading of tourism and hospitality, which accelerated its annual rate by 1.5 percentage points, to 1.5 %. This bullish evolution responds to the fact that this year Easter was in April and the past in March. Interurban public transport has also contributed, raising its annual rate by 2.4 points, to 5.6%, due to the increase in air transport costs. BINES fell -0.4% in annual rate, compared to -0.3% the previous month, due to the moderation in car prices.

Processed food, including beverages and tobacco, moderates its annual rate by four tenths, down to 0.8%. This slowdown is explained by the heading of oils, which records an annual rate of -9.1%, 3.6 points lower than the previous month. To a lesser extent, the lower variation rate of other items such as sugar, mineral water and soft drinks and alcoholic beverages has influenced.

The 0.9% month-on-month increase in the CPI in April responds to the growth of BINES prices and, to a much lesser extent, to services, energy products and unprocessed food. BINES increased 2.8%, mainly due to clothing and footwear, which rose 10.4%, due to the spring and summer season. To a lesser extent, the increase in car prices (0.2%) has influenced. Services increased 0.4%, due to tourism and hospitality (1.5%), and within this heading organized travel (7.2%), and intercity public transport (2.8%) by transport air (6%). Energy products rose 0.3% in the month due to the 0.4% growth in their main item fuels and fuels. For its part, unprocessed food increased by 0.2% in the month, due to the increase in the cost of fresh fruits (2.4%).

Of the 17 autonomous communities, four have registered a year-on-year inflation rate higher than the national average in April. The most inflationary are Catalonia (0.7%), the Balearic Islands and the Basque Country with 0.6%, followed by Galicia (0.5%). In Cantabria and Castilla y León the annual CPI rate has coincided with the national average (0.4%). The rest have lower rates than the national average. Andalucía, Castilla-La Mancha, C. Valenciana and Región de Murcia, with 0.3%. Extremadura and Navarra are the only communities that present negative inflation.

The annual rate of the CPI for constant taxes was 0.4% in April, six tenths more than the previous month. The underlying constant tax has increased two tenths, down to 0.2%. The annual rate of energy stood at 1.6%, compared to -1.4% in March, and that of unprocessed food at -0.5% (0.0% in March). Within the core of inflation underlying constant taxes, BINES prices stood at -0.4% year-on-year (-0.3% in the previous month), processed foods rose 0.7%, compared to 1% the previous month, and those of services have increased 0.5%, compared to -0.2% in March.

The INE has also published the harmonized CPI (IPCA) for April, whose annual rate stands at 0.3%, half a point more than in the previous month. If this data is compared with the annual rate estimated by Eurostat for the euro area as a whole (0.7%), the inflation differential continues to be favorable to Spain at 0.4 percentage points, three tenths less than in March.

In summary, inflation has increased by four tenths in the month of April, after the punctual drop in March. Inflation is expected to remain positive, but moderate, in the coming months. This price containment is valued positively, since it facilitates the continuation of wage moderation, which has a favorable impact on the competitiveness of national production and exports. It also allows the purchasing power of wages and pensions to be maintained, which favors domestic consumption, with the consequent favorable effect of the recovery of production and employment.

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