• The underlying rate, the one that excludes the most volatile elements of the CPI, falls four tenths, to 0.8%

The Consumer Price Index (CPI) increased 1.1% year-on-year in April 2018, according to figures published by the National Statistics Institute (INE), the same rate as the one advanced by the INE and lower by one tenth to the one registered in March (1.2%). This evolution is explained by the slowdown in service prices, partially offset by the acceleration of the rest of the components. In inter-monthly terms, the CPI registered an increase of 0.8% in April 2018, compared to 1% in the same month of 2017.

The prices of energy products grew by 2.3% year-on-year in April, one point more than in March, mainly due to the 3.9% increase in the prices of fuels and lubricants, higher by 2.3 points at from the previous month, and, to a lesser extent, to the moderation of the rate of fall in electricity prices (from -1.4% to -0.8%). On the other hand, gas prices slowed 5.7 points, up to 0.9%.

Food inflation stood at 1.6% in April, a rate that was two tenths higher than that of the previous month. The prices of unprocessed food increased by 2%, four tenths more than in the previous month, mainly due to the acceleration of prices of fresh and frozen fish (4.8%, a higher rate of 2.2 points a the one of the previous month). The prices of processed food, beverages and tobacco accelerated one tenth, up to 1.4% year-on-year, highlighting dairy products, whose prices accelerated 1.1 points, to 1.5% year-on-year.

Core inflation (which excludes unprocessed food and energy products, more volatile elements of the CPI) moderated in April four tenths, to 0.8%, mainly due to services, whose prices slowed down eight tenths, up to 1.1% The tourism and hospitality component has contributed mainly to this slowdown and, in particular, the tourist packages, whose prices have fallen 6.7% year-on-year in April, after increasing 6.4% in the previous month due to the celebration of the Easter this year in March, while last year was held in April. On the other hand, the prices of non-energy industrial goods (BINE) stabilized, after the 0.1% fall of the previous month.

In inter-monthly terms, the CPI registered a variation rate of 0.8% in April 2018, compared to the 1% increase in the same month of 2017. By components, service prices stabilized, compared to the increase in 0.8% in April 2017, while the rest of the components increased: 2.6% in the BINE (higher rate in one tenth than in April 2017), 1.5% in energy products (one point more than in the same month of the previous year) and 0.1% food (-0.1% a year earlier). Within the food group, prices of unprocessed foods stabilized (-0.4% in the same period of the previous year), while those of processed products increased 0.2% (0.1% the previous year ).

April inflation fell compared to March in ten of the seventeen autonomous communities, highlighting Madrid and Catalonia, where four and three tenths were moderated, up to 1% and 1.2%, respectively, while increasing one tenth in Galicia and Castilla La Mancha, up to 1.2%.

The interannual rate of the CPI to constant taxes stood at 1.1% in April, as was the one registered by the general CPI.

The INE has published the harmonized CPI (IPCA) corresponding to the month of April, whose interannual rate stands at 1.1%, two tenths lower than that of March. For its part, the rate advanced by Eurostat for the whole of the euro zone in April is 1.2%, resulting in a favorable inflation differential for Spain of one tenth.

Video with the assessment of Irene Garrido, Secretary of State for Economy and Business Support:


Source of the new