• The underlying rate, which excludes the most volatile elements of the CPI, decreases two tenths, reaching 1.2%

The Consumer Price Index (CPI) increased 1.6% year-on-year in August 2017, one tenth more than in July, according to figures published by the National Statistics Institute (INE), a rate that coincides with that advanced by the INE at the end of last month. This evolution is mainly explained by the acceleration of the prices of energy products and, to a lesser extent, of processed food, partially offset by the slower growth in the prices of services and non-energy industrial goods (BINE), and by the steepest decline in the prices of unprocessed food. In inter-monthly terms, the CPI has grown 0.2% in August 2017, compared to the 0.1% rise in the same month of 2016.

The prices of energy products increased by 6.3% year-on-year, 2.2 points more than in July, mainly due to the acceleration of the prices of fuels and lubricants, which rose from 1.9% year-on-year in July to 5.4 % in August. Also, gas prices grew 12.6%, compared to 10.7% the previous month. On the other hand, electricity prices reduced their rate of increase by eight tenths, up to 5.4%.

Food inflation stood at 0.3% in August, equal to that of the previous month. The prices of unprocessed food were reduced 1.6%, six tenths more than the previous month, highlighting the behavior of fresh fruits, whose prices intensified 2.8 points their rate of decline (they went from falling 12% in July to 14.8% in August). The prices of processed food, beverages and tobacco increased 1.1% in August, one tenth more than in July. It should be noted the acceleration of nine tenths of oils and fats, up to 7%.

Core inflation, which excludes unprocessed food and energy, the most volatile elements of the CPI, declined two tenths in August, to 1.2%, mainly due to the slower rate of increase in service and service prices. non-energy industrial goods (BINE). Services grew 1.7% year-on-year, two tenths less than in July, highlighting the evolution of the prices of tourist packages, which slowed down 2.2 points, up to 6.2%, and of telephone and telephone services. fax, which moderated the rate of increase nine tenths, up to 1.5%. On the other hand, the prices of the BINE stabilized in August, after the increase of 0.3% in July, highlighting the slowdown in car prices, which increased from 3.3% in July to 1.7 % in August. On the contrary, processed food increased 1.1%, one tenth more than in the previous month.

In inter-monthly terms, the CPI registered a 0.2% variation rate in August, compared to the 0.1% increase recorded in the same month of 2016. By components, the prices of services increased 0.4%, two tenths less than a year earlier; those of the BINE fell 0.2%, compared to the stability of August 2016; those of the feeding decreased 0.1%, after the null variation of a year before; and those of energy products grew by 1%, after the fall of the same magnitude in August last year.

Within the food group, prices for unprocessed foods recorded in August 2017 an inter-monthly rate of -0.9% (-0.3% in the same month of 2016), and those for processed foods of 0, 2% (0.1% one year before).

The interannual rate of the CPI increased in August in ten autonomous communities, remained unchanged in four and decreased in the remaining three. The highest rebounds occurred in the inflation rates of Cantabria and Principado de Asturias (five and two tenths, respectively, up to 1.8% and 1.5%), and the largest declines in La Rioja and Comunidad Foral de Navarra ( two tenths both, up to 1.5% and 1%, respectively).

The interannual rate of the CPI to constant taxes stood at 1.6% in August, as was the general CPI.

The INE has also published the harmonized CPI (CPI) for the month of August 2017, whose annual rate of change is 2%, three tenths higher than July. On the other hand, the rate advanced by Eurostat for the whole of the euro zone was 1.5% in August, two tenths higher than the previous month, resulting in an inflation differential for Spain with respect to the euro zone of 0, 5 points, one tenth higher than July.

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