• Prices of fuels and lubricants accelerate in July, while those of electricity slow down

The Consumer Price Index (CPI) increased in July 2017 by 1.5% year-on-year, as in the month of June, according to figures published by the National Statistics Institute (INE), a rate coinciding with that advanced by INE at the end of last month. This evolution is explained by the fact that the behavior of unprocessed food prices, which went from growing in June to falling in July, has been offset by the acceleration in the prices of energy products, non-energy industrial goods (BINE) and processed food. In month-on-month terms, the CPI 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 in 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 rate of electricity prices, They slowed 2.2 points to 6.2% year-on-year in July. For their part, gas prices accelerated seven tenths, to 10.7%.

Food inflation stood at 0.3% in July, six tenths below that of the previous month. The prices of unprocessed food went from growing 1.4% in June to falling 1% in July, highlighting the behavior of those of fresh fruits, which increased their rate of decline by 9.4 points (they went from falling the 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 is worth noting 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 two tenths in July, to 1.4%, due to the acceleration of BINE and processed food. BINE grew 0.3% year-on-year in July, one tenth more than in June, highlighting the evolution of prices for clothing and footwear, which increased its rate of increase by two tenths, to 0.4%. The processed food grew 1%, three tenths more than in the previous month. On the other hand, the prices of services maintained their interannual rate at 1.9%.

In month-on-month terms, the CPI registered a decrease of 0.7% in July 2017, as in the same month of 2016. By component, the prices of services increased by 0.7%, the same variation as one year before; those of the BINE decreased 3.7%, two tenths less than in July 2016 (-3.9%); those of the food registered a null variation, compared to the 0.6% increase of a year before; and the prices of energy products fell 0.6%, after the 1% drop in July last year.

Within the food group, the price of unprocessed food registered a month-on-month rate of -0.4% in July 2017 (2.1% in the same month of 2016), and that of processed food 0.1 % (-0.1% a year earlier).

The annual rate of the CPI increased in July in nine autonomous communities, remained in three and decreased in the remaining five. The greatest increases 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 decreases in Region of Murcia and the Canary Islands (two tenths both, up to 0.9% and 1.5%, respectively).

The annual rate of the CPI at constant taxes stood at 1.5% in July, as did the general CPI.

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

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