• The decrease responds to the evolution of fuels and fuels plus non-energy industrial goods and services
  • Moderating prices and unit labor costs drive significant competitiveness gains

The Consumer Price Index (CPI) decreased in November in interannual terms by six tenths, to 2.9%, according to data published today by the National Statistics Institute (INE). Compared to the previous month, prices fell 0.1%. This decrease in the annual inflation rate responds above all to the evolution of energy products and, to a lesser extent, of services and non-energy industrial goods.

The Underlying inflation (which excludes energy products and fresh food) decreased two tenths, to 2.3%. This slowdown was due to the better evolution of the services sector (from 2.6% to 2.3%) and of non-energy industrial goods (from 2% to 1.7%). Meanwhile, the processed feed accelerated slightly, from 3% to 3.1% due to the upward pressure of the oils.

Within the services, the most significant decreases were registered in tourism and hospitality (it reduced its annual rate from 1.5% in October to 1.2% last month), in addition to communications, especially for telephone services. Among non-energy industrial goods, the moderation in car prices, derived mainly from the PIVE Plan, stood out, while clothing and footwear increased a tenth, to 0.5%. Medicines rose by 27.5% due to the notable drop in prices that took place in November 2011. In the area of ​​processed food, the most notable figure was the increase in oils from 5.3% in October to 13.2%, although other items evolved in the opposite direction (tobacco went from 6.2% to 5.7%).

The energy products For the second consecutive month, they moderated their annual rate, with a drop of 3.7 points, to 7.5%, derived from the improvement of fuels and fuels, which reduced their rate from 10.7% in October to 5, 7% in November. While the fresh food they increased by six tenths, up to 3.3%, an increase that was more than offset by the favorable evolution of energy products.

In monthly rateThe decrease in the CPI is explained by the notable fall in the prices of energy products (-2.8%), caused by the decrease in fuels and fuels by 3.8%. Services (-0.4%) also influenced, due to the drop in organized trips (-5.6%), hotels and other accommodation (-6.4%), as well as recreational and sports services (-2, 3%) and telephone services (-1.1%).

On the contrary, in the month of November the non-energy industrial goods they increased by 1%, as a result of the seasonal increase in clothing and footwear (5.5% and 4.2%, respectively) and, to a much lesser extent, in medicines. It is also worth noting the monthly rate of 0.6% registered for raw food (legumes and vegetables rose 1.6% and fresh fish 1.3%) and processed food (oils rose 7%). , 6% over the previous month).

By Autonomous Community, the most inflationary were Catalonia (3.6%), Cantabria (3.5%) and the Balearic Islands (3.2%). On the opposite side were Ceuta (2.3%), Melilla (1.6%), Canarias and Andalucía (both with 2.6%).

The INE has also published the Harmonized CPI (IPCA) for November, whose annual rate stands at 3%, half a point less than the previous month. When compared to the annual rate estimated by Eurostat for the euro area as a whole (2.2%), the differential would be unfavorable to Spain by 0.8 points, compared to a percentage point the previous month.

For his part, the CPI at constant taxes it experienced a monthly decrease of 0.1%, which implies a drop of six tenths in its annual rate, down to 0.9%. This reduction was mainly due to energy, whose annual rate fell 3.6 points, to 5%. Non-energy industrial goods also contributed to this moderation, whose rate went from -0.2% to -0.5%; and services, which fell two tenths, to 0.3%. In contrast, unprocessed food rose six tenths, to 2.3% and processed food remained at 1.6%.

The CPI data for November is positive because it breaks the upward trend shown since July, intensified in September by the VAT increase. After the maximum in October (3.5%) a smooth and continuous slowdown in prices is expected in the coming months, especially as the upward effects caused by the rise in certain administered prices disappear, by measures to contain pharmaceutical spending and changes in VAT.

The figures for November confirm the trend towards a moderation in prices appropriate to the situation that the Spanish economy is going through. This results lay the foundations for an intensification of the gains in competitiveness already observed in recent months, which are essential as a driving factor for growth within a monetary union. With this, the drop in unit labor costs is facilitated and the competitiveness of Spanish exports is promoted.



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