• Core inflation remains at 1.1%.
  • The favorable differential for Spain with respect to the euro area increases

May 14, 2020. The general CPI year-on-year rate fell seven tenths in April compared to the previous month, to -0.7%.

The prices of energy products fell 17.1% year-on-year in April, almost seven and a half points more than in March. This reduction was mainly due to the drop in fuel and fuel prices., which fell by 16.2%, compared to the fall of 8% in the previous month. Electricity prices also contributed to this fall, although to a lesser extent, with a decrease of 19.9%, a drop 5.7 points more pronounced than in March.

Unprocessed food prices increased 6.9% year-on-year, three points more than the previous month, mainly due to the acceleration in prices of fresh fruits, which increased 12.8% year-on-year, compared to 5, 2% the previous month, affected by a base effect associated with the intense fall of a year earlier, and of fresh legumes and vegetables that grew 5.8%, almost five points more than in March.

Core inflation, which excludes the most volatile elements of the CPI (unprocessed food and energy products), remains at 1.1% year-on-year, due to the rise in the growth rate of processed food prices, five tenths to 1.9%, was offset by the lower rise in service prices, which grew 1.3%, one tenth less than in March. Among the services, the slowdown in tourism and hospitality prices stands out, a tenth to 1.5% and, specifically, in restaurants.

In April, the interannual rate of the CPI decreased compared to that of March in all the autonomous communities. The greatest decreases occurred in Aragón and Castilla-La Mancha, one point to -1.2% in both cases.

The annual rate of the CPI at constant taxes stood in April at
-0.7%, the same as the general CPI.

The INE has also published the harmonized CPI (HICP) for the month of April, whose interannual rate has decreased eight tenths, reaching -0.7%. Inflation advanced by Eurostat for the euro area as a whole stood at 0.4% in the same period, the favorable differential for Spain standing at 1.1 percentage points, five tenths more than in March.

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