• The underlying rate, which excludes the most volatile elements of the CPI, decreases one tenth, down to 0.8%

The Consumer Price Index (CPI) increased in November 2017 by 1.7% year-on-year, according to figures published by the National Statistics Institute (INE), a rate one tenth higher than that advanced by the INE for that month as to that registered in October. This increase in inflation is explained by the rise in energy prices, in line with the evolution of oil prices, partially offset by the slight slowdown in food and service prices, and by the greater decline in non-energy industrial goods. (BINE). In month-on-month terms, the CPI registered a rise of 0.5% in November 2017, compared to the 0.4% advance in the same month of 2016.

The prices of energy products increased in November this year by 6% year-on-year, 2.1 points more than in October, a trend mainly associated with the acceleration in the prices of fuels and lubricants. Liquid fuel prices accelerated six points, to 8.9%, and electricity prices one tenth, to 3.5%. On the other hand, gas prices reduced the growth rate by seven tenths, to 7.1%.

Food inflation stood at 2.2% in November, one tenth lower than the previous month. Unprocessed food prices grew 4.3%, six tenths less than in the previous month, due to the slowdown in fresh fruit prices, 2.1 points to 8%, and, to a lesser extent, of fresh legumes and vegetables, which went from growing by 8.8% in October to 7.5% in November. The prices of processed food, beverages and tobacco rose 1.2%, two tenths more than in October.

Core inflation (which excludes unprocessed food and energy products, the most volatile elements of the CPI) fell one tenth in November, to 0.8%, due to the slowdown in service prices and the greater drop in BINE prices. Service prices increased 1.5% in the interannual rate, one tenth less than in the previous month, mainly as a consequence of the evolution of tourism and hospitality, whose prices increased from 2.6% in October to 2 , 2% in November. For their part, BINE prices fell 0.3%, one tenth more than the previous month.

In month-on-month terms, the CPI registered a variation rate of 0.5% in November 2017, one tenth higher than that registered in the same month of 2016. By component, the prices of energy products increased by 2%, compared to the stabilization of a year before; those of the BINE increased 1.4%, one tenth less than in November of last year; and those of services and food both decreased 0.2%, a tenth higher drop than in November 2016.

Within the food group, the prices of unprocessed food registered in November this year a month-on-month rate of -1% (-0.4% in the same month of 2016), and those of processed foods of 0.2 %, compared to the stabilization of a year earlier.

The inflation rate increased in November compared to October in most of the autonomous communities and decreased only in La Rioja (two tenths, down to 1.4%). The largest increases, of three tenths, occurred in Galicia (1.8%) and in the Region of Murcia (1.2%). The communities of Catalonia (1.9%), Melilla (1.9%), the Balearic Islands (1.8%), the Basque Country (1.6%) and the Community of Madrid (1.5%) maintained the rate of inflation from the previous month.

The annual rate of the CPI at constant taxes stood at 1.7% in November, as did the general CPI.

The INE has also published the harmonized CPI (HICP) for the month of November, whose year-on-year rate stands at 1.8%, one tenth higher than in October. For its part, the rate advanced by Eurostat for the euro area as a whole in November is 1.5%, compared to 1.4% the previous month, keeping the inflation differential for Spain with respect to the euro area at 0, 3 percentage points



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