• The prices of fuels and lubricants accelerate in July, while those of electricity are halted

The Consumer Price Index (CPI) increased 1.5% year-on-year in July 2017, as in the month of June, according to figures published by the National Statistics Institute (INE), a rate that coincides with that advanced by INE at the end of last month. This evolution is explained because the behavior of the prices of unprocessed food, which went from growing in June to falling in July, has been compensated by the acceleration of the prices of energy products, non-energy industrial goods (BINE) and processed food. In inter-monthly terms, the CPI has registered a decrease of 0.7% in July 2017, the same as in July 2016.

The prices of energy products increased 4.1% year-on-year, four tenths more than in June. This evolution is mainly explained by the acceleration of the prices of fuels and lubricants, which went from 0.4% year-on-year in June to 1.9% in July, partially offset by the slower growth in electricity prices, 2.2 points slowed down to 6.2% year-on-year in July. On the other hand, gas prices accelerated seven tenths, up to 10.7%.

Food inflation stood at 0.3% in July, six tenths below that of the previous month. The prices of unprocessed food increased from 1.4% in June to 1% in July, highlighting the behavior of fresh fruits, which intensified their rate of decline by 9.4 points (they dropped from 2.6% in June to 12% in July). The prices of processed food, beverages and tobacco increased 1% in July, three tenths more than in June; It should be noted the acceleration of two points of oils and fats, up to 6.1%.

Core inflation (which excludes unprocessed food and energy, which are the most volatile elements of the CPI) increased by two tenths in July, to 1.4%, due to the acceleration of the BINE and processed food. The BINE grew 0.3% year-on-year in July, one tenth more than in June, highlighting the evolution of clothing and footwear prices, which increased their growth rate by two tenths, to 0.4%. Processed food grew 1%, three tenths more than in the previous month. On the other hand, the prices of the services maintained their interannual rate at 1.9%.

In inter-monthly terms, the CPI registered a decrease of 0.7% in July 2017, as in the same month of 2016. By component, service prices increased 0.7%, same variation as a year before; those of the BINE decreased 3.7%, two tenths less than in July 2016 (-3.9%); those of the feeding registered a null variation, in front of the increase of 0.6% of a year before; and the prices of energy products fell 0.6%, after the fall of 1% in July last year.

Within the food group, prices for unprocessed foods recorded in July 2017 an inter-monthly rate of -0.4% (2.1% in the same month of 2016), and those for processed foods of 0.1 % (-0.1% a year earlier).

The interannual rate of the CPI increased in July in nine autonomous communities, remained in three and decreased in the remaining five. The highest rebounds occurred in the inflation rates of Catalonia, the Basque Country and the Principality of Asturias (two tenths all of them, up to 1.9%, 1.7% and 1.3%, respectively), and the largest declines in Region of Murcia and the Canary Islands (two tenths both, up to 0.9% and 1.5%, respectively).

The interannual rate of the CPI to constant taxes stood at 1.5% in July, as was the general CPI.

The INE has also published the harmonized CPI (CPI) corresponding to the month of July 2017, whose interannual variation rate stands at 1.7%, one tenth higher than in June. On the other hand, the rate advanced by Eurostat for the whole of the euro zone was 1.3% in July, equal to that of the previous month, resulting in an inflation differential for Spain with respect to the euro zone of 0.4 points, one tenth higher than June.



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