- The inflation differential for Spain with respect to the euro zone stands at 0.3 points, three tenths lower than May
The Consumer Price Index (CPI) increased 1.5% year-on-year in June 2017, four tenths less than in May, according to figures published by the National Statistics Institute (INE), coinciding with the one advanced at the end of the past month. This evolution is explained by the deceleration of energy prices, in particular of fuels and lubricants and, to a lesser extent, of electricity, as well as by the slower rate of growth of unprocessed food prices. On the contrary, the prices of services, processed food and non-energy industrial goods (BINE) accelerated. In inter-monthly terms, the CPI registered a zero variation rate in June 2017, compared to the 0.5% rise in the same month of 2016.
Energy products prices increased 3.7% year-on-year, 4.6 points less than in May. This evolution is explained by the slowdown in the prices of fuels and lubricants, which increased from 4.9% year-on-year in May to 0.4% in June and, to a lesser extent, from electricity prices, which moderated the pace growth 7.8 points, up to 8.4% year-on-year. On the other hand, gas prices accelerated 1.7 points, up to 10%.
Food prices grew 0.9% in June, three tenths less than in May. Inflation of unprocessed food stood at 1.4%, 1.4 points below that of the previous month, highlighting the evolution of fresh fruit prices, which grew from 3.2% in May to fall 2.6% in June and, to a lesser extent, of fresh vegetables, which slowed down 2.3 points, up 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 unprocessed food and energy, which are the most volatile elements of the CPI) increased two tenths in June, up 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, up to 1.9%, as a result of the evolution of tourism and hospitality prices, which increased from 2.4% year-on-year in May to 3% in June and, to a lesser extent, transport interurban public, whose prices accelerated 2.7 points, up to 3.5%. In turn, the BINE increased 0.2% in June, one tenth more than in May.
In inter-monthly terms, the CPI registered a zero variation rate in June 2017, compared to the 0.5% growth recorded in the same month of 2016. By components, the prices of services increased 0.5%, compared to to the 0.3% increase in June 2016; those of the BINE decreased 0.3%, as in June 2016; those of the feeding 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%, following the 3.5% increase in June last year.
Within the food group, prices for unprocessed foods recorded in June 2017 an inter-monthly rate of -0.5% (0.9% in the same month of 2016) and those for processed foods, of 0.2 % (-0.1% a year earlier).
The interannual rate of the CPI decreased in June in all the autonomous communities. The smallest fall with respect to the May rate was recorded in the Canary Islands (three tenths, up to 1.7%), and the remaining communities experienced declines of four or five tenths.
The interannual rate of the CPI to constant taxes stood at 1.5% in June, as was 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 in May. On the other hand, the rate advanced by Eurostat for the whole of the euro zone 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 zone of 0 , 3 points, three tenths lower than May.
