- The inflation differential for Spain with respect to the euro area stands at 0.3 points, three tenths lower than in May
The Consumer Price Index (CPI) increased in June 2017 by 1.5% year-on-year, four tenths less than in May, according to figures published by the National Statistics Institute (INE), coinciding with that advanced in late last month. This evolution is explained by the slowdown in energy prices, particularly fuel and lubricants and, to a lesser extent, electricity, as well as by the slower growth rate of raw food prices. In contrast, the prices of services, processed food and non-energy industrial goods (BINE) accelerated. In month-on-month terms, the CPI registered a zero variation rate in June 2017, compared to the 0.5% rise in the same month of 2016.
The prices of energy products increased 3.7% year-on-year, 4.6 points less than in May. This evolution is explained by the slowdown in fuel and lubricant prices, which went from 4.9% year-on-year in May to 0.4% in June and, to a lesser extent, in electricity prices, which moderated the pace of growth 7.8 points, up to 8.4% year-on-year. On the other hand, gas prices accelerated 1.7 points, to 10%.
Food prices grew 0.9% in June, three tenths less than in May. Inflation for unprocessed food stood at 1.4%, 1.4 points below that of the previous month, highlighting the evolution of fresh fruit prices, which went from growing by 3.2% in May 2.6% fell in June and, to a lesser extent, of fresh vegetables, which slowed 2.3 points to 1%. The prices of processed food, beverages and tobacco increased 0.7% in June, three tenths more than in May.
Core inflation (which excludes raw food and energy, which are the most volatile elements of the CPI) increased two tenths in June, to 1.2%, due to the acceleration of all its components, mainly services and, to a lesser extent, processed food and BINE. Services accelerated two tenths, to 1.9%, as a consequence of the evolution of tourism and hospitality prices, which went from 2.4% year-on-year in May to 3% in June and, to a lesser extent, of transport long-distance public, whose prices accelerated 2.7 points, to 3.5%. On the other hand, BINE increased 0.2% in June, one tenth more than in May.
In month-on-month terms, the CPI registered a null variation rate in June 2017, compared to the 0.5% growth registered in the same month of 2016. By component, the prices of services increased by 0.5%, compared to to the increase of 0.3% in June 2016; BINE prices decreased by 0.3%, as in June 2016; those of the food registered a null variation, in front of the increase of 0.2% of a year before; and the prices of energy products fell by 0.9%, after the 3.5% increase in June last year.
In the food group, the prices of unprocessed food registered in June 2017 a month-on-month rate of -0.5% (0.9% in the same month of 2016) and those of processed food, 0.2 % (-0.1% a year earlier).
The interannual rate of the CPI decreased in June in all the autonomous communities. The smallest drop compared to the May rate was registered in the Canary Islands (three tenths, up to 1.7%), and the remaining communities experienced declines of four or five tenths.
The annual rate of the CPI at constant taxes stood at 1.5% in June, as did the general CPI.
The INE has also published the harmonized CPI (IPCA) corresponding to the month of June 2017, whose interannual variation rate stands at 1.6%, four tenths lower than that of May. For its part, the rate advanced by Eurostat for the euro area as a whole stood at 1.3% in June, one tenth lower than the previous month, resulting in an inflation differential for Spain with respect to the euro area of 0 , 3 points, three tenths lower than in May.
