Inflation falls in August to 0.3% due to the reduction in energy prices

• Core inflation remains at 0.9%
• Increase the favorable inflation differential for Spain with the euro zone to 0.6 pointsSeptember 13, 2019.

The interannual rate of the general CPI was reduced by two tenths in August 2019, standing at 0.3%. This reduction is mainly due to the fall in energy prices, particularly those of electricity.

The prices of energy products fell 4.5% in August, 2.1 points higher than in July. This decrease was mainly due to the 12.7% year-on-year fall in electricity prices, almost six points more than in July. They also contributed to the drop in energy prices, although to a lesser extent, fuels and lubricants, with a reduction of 1%, and gas, which decreased 4.1%.

Unprocessed food prices increased 1.5% year-on-year, one tenth less than in July. The interannual fall of 7.3% in the price of fresh fruits stands out in this evolution.

Core inflation, which excludes the most volatile elements of the CPI (unprocessed food and energy products), remained stable in August at 0.9% year-on-year. By components, the growth rate of service prices remained at 1.4%, while those of processed food and non-energy industrial goods increased by one tenth, to 0.6% and 0.4%, respectively.

In August, the annual rate of the CPI decreased in all autonomous communities. The largest declines occurred in Galicia and Asturias, communities in which the CPI was reduced by four tenths, standing at 0.1% and -0.1%, respectively.

The interannual rate of the CPI to constant taxes stood at 0.2% in August, one tenth below that registered by the general CPI.

The INE has also published the harmonized CPI (CPI) for the month of August, whose annual rate is also reduced by two tenths to 0.4%. The inflation advanced by Eurostat for the whole of the euro zone stands at 1% in the same period, resulting in a favorable differential for Spain of 0.6 percentage points.