- The underlying rate, which excludes the most volatile elements of the CPI, remains at 0.8%
- The inflation differential with respect to the euro zone is favorable to Spain in two tenths
The Consumer Price Index (CPI) increased 1.1% year-on-year in December 2017, according to figures published by the National Statistics Institute (INE), a rate lower by one tenth than that advanced by the INE at the end of last month (1.2%) and in six tenths to that registered in November (1.7%). This evolution is mainly explained by the deceleration of the prices of energy products and, to a lesser extent, of unprocessed food and services. In inter-monthly terms, the CPI has registered a zero variation rate in December 2017, compared to the 0.6% increase in the same month of 2016.
The prices of energy products increased 2.6% year-on-year in December 2017, 3.4 points less than in November, mainly due to the slowdown in the prices of fuels and lubricants. These went from registering a 6.7% year-on-year rate in November to 3% in December. And, to a lesser extent, it is also due to the fall in electricity prices of 0.2%, after registering a 3.5% increase in November. On the other hand, gas prices moderated their growth rate by three tenths, up to 6.8%.
Food inflation stood at 1.7% in December, five tenths lower than the previous month. Unprocessed food prices grew 2.8%, 1.5 points less than in the previous month, due to the slowdown in fresh fruit prices, from 3.9 points, to 4.1%, and from fresh vegetables, which grew from 7.5% in November to 3.3% in December. Inflation of processed food, beverages and tobacco remained at 1.2%.
Core inflation (which excludes unprocessed food and energy products, more volatile elements of the CPI) remained at 0.8% in December. The prices of services slowed down two tenths, up to 1.3% year-on-year, due to tourism and hospitality and, in particular, to tourist packages, whose prices went from growing 5.8% in November to falling 1, 2% in December. On the other hand, the year-on-year rate of variation of the prices of non-energy industrial goods (BINE) remained at -0.3%.
In inter-monthly terms, the CPI registered a zero variation rate in December 2017, six tenths lower than that registered in the same month of 2016. By components, the prices of energy products increased 0.3%, compared to 3.6% advance in December 2016; those of food remained stable, compared to the 0.4% increase in the same month of 2016; those of the services increased 0.4%, two tenths less than in the same period of the previous year; and those of the BINE were reduced 0.6%, as in December 2016.
Within the food group, the prices of unprocessed foods registered in December 2017 an inter-monthly rate of -0.2% (1.4% in the same month of 2016), and those of processed foods remained stable, Just like a year before.
The inflation rate decreased in December compared to November in all the autonomous communities. The greatest decreases occurred in La Rioja (0.6%), Aragón (0.9%), Castilla y León (1%) and Catalonia (1.2%), with declines of eight tenths in the first and seven tenths in the remaining ones. The Community of Madrid (1.2%) is the one with the lowest fall in its annual rate, with a decrease of three tenths.
The interannual rate of the CPI at constant taxes stood at 1.1% in December, as was the one registered by the general CPI.
The INE has also published the harmonized CPI (CPI) corresponding to the month of December, whose annual rate is 1.2%, six tenths lower than that of November. On the other hand, the rate advanced by Eurostat for the whole of the euro zone in December is 1.4%, resulting in a favorable inflation differential for Spain with respect to the two-tenth euro zone, compared to the unfavorable differentials recorded at over the previous twelve months.
