• The underlying rate, which excludes the most volatile elements of the CPI, stands at 1.1%

The Consumer Price Index (CPI) increased in May 2018 by 2.1% year-on-year, according to figures published by the National Institute of Statistics (INE), a rate higher by one tenth than that advanced by the INE and a point a the one registered in April (1.1%). This evolution is mainly explained by the acceleration of energy prices and, to a lesser extent, of services and food, while inflation of non-energy industrial goods remained stabilized. In inter-monthly terms, the CPI has registered a 0.9% increase in May 2018, compared to the 0.1% drop in the same month of 2017.

The prices of energy products increased in May by 7.8% year-on-year, five and a half points more than in April, mainly due to the acceleration of the prices of fuels and lubricants, which intensified the pace of progress 7, 1 points, up to 11%, and, to a lesser extent, the 4.8% rise in electricity prices, after the fall of 0.8% in April. On the other hand, gas prices decreased 0.4%, after rising 0.9% the previous month.

Food inflation was 2% in May, a rate higher by four tenths than the previous month. The prices of unprocessed food increased 3.5%, a point and a half more than in the previous month, due, in large part, to the increase in the prices of fresh vegetables (2.9%, after 3.9% drop the previous month), as well as the acceleration of fresh fruit prices (3.2 points, up to 6.9%). The prices of processed food, beverages and tobacco slowed down one tenth, up to 1.3% year-on-year, highlighting in this evolution olive oil, whose prices increased from 6% in April to 1.1% in May.

Core inflation (which excludes unprocessed food and energy products, more volatile elements of the CPI) increased in May three tenths, up to 1.1%, mainly due to services, whose prices accelerated seven tenths, to 1 , 8%. The tourism and hospitality component has contributed mainly to this acceleration and, in particular, the tourist packages, whose prices have risen 5.4% in May, after falling 6.7% in April, an evolution that is explained, in part, for the disappearance of the Holy Week effect, which this year has been celebrated in March, while last year was celebrated in April. On the other hand, the prices of non-energy industrial goods (BINE) remained stabilized.

In inter-monthly terms, the CPI registered a variation rate of 0.9% in May 2018, compared to the 0.1% decrease in the same month of 2017, increasing all components: 4.2% energy ( -1.1% in May 2017); 0.7% of BINE, as in the same month of the previous year; 0.6% food (0.3% a year earlier); and 0.3% services (-0.4% in May of last year). Within the food group, prices of unprocessed foods increased 1.8% month-on-month (0.3% in the same period of the previous year) and those of processed foods 0.1% (0.3% year-on-year) preceding).

The interannual rate of the CPI increased in May in all the autonomous communities, highlighting Asturias, where it rebounded 1.3 points, up to 2%, and Navarra and Castilla-La Mancha, where it did 1.2 points, up to 2.1 % and 2.4%, respectively.

The interannual rate of the CPI at constant taxes stood at 2.1% in May, as was the one recorded by the general CPI.

The INE has also published the harmonized CPI (HICP) corresponding to the month of May, whose interannual rate stands at 2.1%, one point higher than that of April. For its part, the rate advanced by Eurostat for the whole euro zone in May is 1.9%.



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