The Consumer Price Index (CPI) increased 0.4% in April at an annual rate, half a percentage point higher than in March, according to data published by the National Statistics Institute (INE). This rise responds to energy services and products. The different calendar of Holy Week 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 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 in the past year the prices decreased with respect to March and in the current one they have increased slightly in fuels and fuels or have not varied in the electricity tariff. Fuels and fuels have increased 1.9 percentage points their annual variation rate, to -1% and the annual electricity rate 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 marked 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, up to 0.7%. Other items such as legumes and fresh and crustacean and mollusc vegetables have also contributed to this moderation. On the contrary, it should be noted the acceleration of sheep meat prices that have increased their annual rate by a percentage point, up to 2.3%, and more moderately poultry meat.

Core inflation or more stable core of prices rose three tenths in April, to 0.3%. This acceleration is a consequence of the bullish behavior of service prices and, in particular, of its main item, tourism and hospitality, although it has been partially offset by the moderation of processed food and BINES.

Services increase their annual rate in April by seven tenths, up to 0.5%, largely due to the tourism and hospitality item that accelerates its annual rate by 1.5 percentage points, to 1.5 %. This upward evolution responds to the fact that this year Holy Week was in April and last, in March. It has also contributed interurban public transport that has raised its annual rate by 2.4 points, to 5.6%, due to the increase in air transport. BINES fell -0.4% in annual rate, compared to -0.3% in the previous month, due to the moderation in the price of cars.

Processed food, including beverages and tobacco, moderates its annual rate by four tenths, up to 0.8%. This deceleration is explained by the item 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 inter-monthly increase of 0.9% of the CPI in April responds to the growth of BINES prices and, to a much lesser extent, services, energy products and unprocessed food. BINES increased by 2.8%, mainly due to clothing and footwear that rose 10.4%, due to the spring and summer campaign. To a lesser extent, the increase in the price of cars (0.2%) has influenced. Services increased 0.4%, due to tourism and hospitality (1.5%), and within this heading to organized travel (7.2%), and interurban public transport (2.8%) by transport aerial (6%). Energy products rose 0.3% in the month due to the growth of 0.4% of its main heading fuels and fuels. On the other hand, unprocessed food increased 0.2% in the month, due to the increase in 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%), 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 rates below the national average. Andalusia, Castilla-La Mancha, C. Valenciana and Murcia, with 0.3%. Extremadura and Navarra are the only communities that have negative inflation.

The annual rate of the CPI at constant taxes was 0.4% in April, six tenths more than the previous month. The underlying constant tax has increased two tenths, to 0.2%. The annual energy rate has stood at 1.6%, compared to -1.4% in March, and that of unprocessed foods at -0.5% (0.0% in March). Within the core of the 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% in the previous month, and those in 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 zone as a whole (0.7%), the inflation differential continues to be favorable to Spain by 0.4 percentage points, three tenths less than in March.

In summary, inflation has increased by four tenths in April, after the occasional fall in March. In the coming months, inflation is expected to remain at positive, but moderate levels. This price containment is valued positively, as it facilitates the continuity of wage moderation, which has a favorable impact on the competitiveness of national production and exports. It also allows the maintenance of the purchasing power of salaries and pensions, which favors internal consumption, with the consequent favorable effect of the recovery of production and employment.



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