• The prices of fuels and lubricants rebound up to a 14.5% year-on-year rate
  • Core inflation, which excludes the most volatile elements of the CPI, decreases one tenth and stands at 1%

The Consumer Price Index (CPI) increased by 2.3% year-on-year in June 2018, according to figures published by the National Statistics Institute (INE), the same rate as the one advanced by the INE and higher by two tenths than the one registered in May (2.1%). This evolution is explained by the acceleration of the prices of energy products and, to a lesser extent, of unprocessed food. Core inflation, which includes the rest of the components, moderated one tenth, up to 1%. In inter-monthly terms, the CPI registered an increase of 0.3% in June 2018, compared to the stabilization of the same month of 2017.

The prices of energy products increased 9.9% year-on-year in June, 2.1 points more than in May, mainly due to the acceleration of fuel and lubricant prices, three and a half points more until 14 , 5%, and, to a lesser extent, the 5.4% rise in electricity prices, which is six tenths higher than in May. On the other hand, gas prices decreased 1.6%, down 1.2 points more pronounced than the previous month.

Food prices increased 2.5% in June, a rate that was half a point higher than the previous month. The prices of unprocessed food increased 5.4%, almost two points more than in the previous month, due to the increase in prices of fresh fruits and, to a lesser extent, those of legumes and fresh vegetables, whose rates practically doubled, up to 14.1% and 6%, respectively. The prices of processed food, beverages and tobacco slowed down three tenths, up to 1% year-on-year, highlighting in this evolution olive oil, whose prices went from growing 1.1% in May to falling 2.2% in June.

Core inflation (which excludes unprocessed food and energy products, more volatile elements of the CPI) decreased in June one tenth, up to 1%, mainly due to services, whose prices moderated the tenth rate of increase, up to 1.6%, to which the tourism and hospitality component mainly contributed, which registered a 2% year-on-year rate in June, three tenths lower than in May. On the other hand, the prices of non-energy industrial goods (BINE) fell slightly, 0.1%, after remaining stabilized the previous month.

In inter-monthly terms, the CPI registered a variation rate of 0.3% in June 2018, compared to the zero rate for the same month of 2017, increasing energy by 1% (-0.9% in June 2017), 0.4% food (zero variation one year earlier) and 0.3% services (0.5% in June last year), while BINE prices decreased 0.3%, as did than in the same month of 2017. Within the food group, prices of unprocessed foods increased 1.3% month-on-month (-0.5% a year earlier) and those of processed foods stabilized (0.2% in June of last year).

The interannual rate of the CPI increased in June in all the autonomous communities, highlighting Murcia, where it rose half a point, up to 2.1%, as well as Cantabria and Navarra, where it rose four tenths, up to 2.5% in both cases.

The interannual rate of the CPI at constant taxes stood at 2.3% in June, as was the one recorded by the general CPI.

The INE has also published the harmonized CPI (IPCA) corresponding to the month of June, whose annual rate is 2.3%, two tenths higher than in May. For its part, the rate advanced by Eurostat for the whole euro zone in June is 2%.

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