The Consumer Price Index (CPI) increased 0.1% in June at an annual rate, one tenth less than in May, according to data published by the National Institute of Statistics (INE). This slight moderation in the rate of inflation responds fundamentally to food and energy products, especially to electricity and certain food items such as oils and fats, fresh fruits and potatoes, which continue discounting in this year the strong rebound registered a year before. Non-Energy Industrial Goods (BINES) have maintained their annual rate, while services have increased slightly. In relation to the previous month, the general CPI has not changed in June.

The annual rate of the prices of unprocessed foods It has decreased 1.1 percentage points in June, to -3.8%. This moderation is due to various items such as potatoes and fresh fruits. Its annual rate has moderated significantly, discounting the strong rebounds recorded a year earlier as a result of the adverse weather in the months of the second quarter of 2013. Potatoes and their preparations have reduced their annual rate by 9.8 points and fruits fresh at 4.1 points, up to -19.7% and -9.6%, respectively. In general, most items of fresh food have moderated their annual variation rate.

The prices of energy products They have registered an annual rate of 2.6% in June, four tenths less than last May. This deceleration is due to the electricity tariff since in that month the extra charges have been returned to consumers in the first six months of the year. The annual rate of this subclass has dropped from 9.4% to 7.1%, resulting from a monthly fall of 2.1%. Fuels and fuels, their main item, have increased their annual variation rate by 0.3 percentage points, to 1.1%. This evolution is in line with the increase in oil prices.

The Underlying inflation it remained in June at 0.0%, for the second consecutive month. This stability has been due to the fact that the slight increase in services has been compensated by the evolution in the opposite direction of the processed food. BINES have shown a neutral position by maintaining their annual rate.

The services they increased their annual inflation in the month of June by one tenth, up to 0.3%, due in large part to the rubric of interurban public transport that increases its annual rate by 0.8 percentage points, up to 4.3%, as a result of a new rise in air transport (3.1%). Tourism and hospitality maintains its annual inflation rate at 0.5%. BINES prices fell 0.5% in annual rate, the same as the previous month.

The processed food, including drinks and tobacco, moderates its annual rate in June four tenths, up to 0.2%. This deceleration is mainly explained by the rubric of oils and fats, which records an annual rate of -14.4%, 2.6 points lower than the month of May. To a lesser extent, the lower variation rate of other items such as sugar, alcoholic beverages and milk has influenced.

The CPI remained stable in June with respect to the previous month, which is explained because the lowering of prices for processed food and BINES fully compensated for the increase in services and fresh food prices, energy products did not vary. Fresh food increased 0.4% in the month and processed food decreased 0.3%, mainly as a result of 4.3% decreases in potatoes, legumes and fresh vegetables (-3.3%), in oils and fats (-2.7%) and in sugar (-1.8%) and the rise of 5.4% in fruits.

Services increased by 0.3% mainly due to tourism and hospitality (0.7%) and, within this heading, by organized travel items (4.3%) and hotels and other accommodations (3.6 %), as well as for interurban public transport (1.6%), especially for air transport (3.1%) as well as car insurance (1.9%). The prices of energy products did not change during the month, because the growth of 0.8% of its main item, fuels and fuels was fully offset by the fall in the electricity tariff (-2.1%). BINES prices decreased 0.4% month-on-month, mainly due to clothing and footwear, which fell 1.3% due to the anticipation of summer sales.

Of the 17 autonomous communities, four have registered a year-on-year inflation rate higher than the national average in June. The most inflationary have been: Balearic Islands and the Basque Country (0.5% both), Catalonia (0.4%) and Galicia (0.3%). In Castilla y León it has coincided with the national average (0.1%) and the rest of the communities have rates below the national average: Aragón, Comunidad Valenciana, Madrid and Rioja with zero inflation and the rest with negative inflation, highlighting as the most deflationary Extremadura (-0.5%).

The annual rate of the CPI for constant taxes has been 0.1% in June, as well as that of the general CPI, one tenth lower than the previous month. The underlying constant tax has remained at 0.0%. The annual energy rate has stood at 2.7%, compared to 3% in May, and that of unprocessed foods at -3.8% (-2.7% in May). Within the core of inflation underlying constant taxes, BINES prices have remained at -0.5% year-on-year, processed foods rose 0.1%, compared to 0.5% the previous month, and those of services increased 0.3%, one tenth more than in the previous month.

The INE has also published the harmonized CPI (IPCA) for June, whose annual rate is 0.0%, two tenths lower than the previous month. If this data is compared with the annual rate estimated by Eurostat for the euro zone as a whole (0.5%), the inflation differential continues to be favorable to Spain, at 0.5 percentage points, two tenths more favorable than in the last month.

In summary, inflation has moderated a tenth in the month of June due to the evolution of the prices of some of the most volatile items of the CPI, such as unprocessed food, and energy prices, especially the electricity tariff. This price containment is valued positively, as it facilitates the continuity of wage moderation, which has a favorable impact on the competitiveness of our economy and exports. In addition, it allows the maintenance of the purchasing power of salaries and pensions, which favors domestic consumption. In short, it is a fact that favors the recovery of production and employment.

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