• The underlying rate, which excludes the most volatile elements of the CPI, remains at 1.2%

The Consumer Price Index (CPI) increased 1.8% year-on-year in September 2017, a rate that coincides with that advanced by the INE at the end of last month, and two tenths higher than that of August, according to published figures by the National Institute of Statistics (INE). This evolution is mainly explained by the increase in prices of unprocessed food, after the fall of August, and to a lesser extent by the acceleration of services and non-energy industrial goods (BINE), partially offset by the slower pace of growth in the prices of energy products and processed food. In inter-monthly terms, the CPI has grown 0.2% in September 2017, compared to the zero variation of the same month of 2016.

The prices of energy products increased by 5.8% year-on-year, five tenths less than in August, due to the slowdown in electricity prices, which went from registering a rate of 5.4% year-on-year in August to 4.4% in September, and gas, which reduced its growth 1.2 points, to 11.4%. On the other hand, the prices of fuels and lubricants accelerated one tenth, up to 5.5%.

Food inflation stood at 1.3% in September, a point higher than the previous month. The prices of unprocessed food grew 2.2%, after falling 1.6% in the previous month, mainly due to the evolution of fresh fruit prices, which moderated its decline rate 12.1 points, up to 2.7%, and, to a lesser extent, those of fresh vegetables, whose prices accelerated 6.5 points in September, to 8.6%. The prices of processed food, beverages and tobacco increased 0.9% in September, two tenths less than in August.

Core inflation (which excludes unprocessed food and energy products, which are the most volatile elements of the CPI) remained at 1.2% in September, offsetting the smaller increase in processed food with the acceleration of services and of the BINE. Services grew 1.8% year-on-year, one tenth more than in August, highlighting the evolution of the prices of tourist packages, which accelerated 2.6 points, up to 8.8%, and interurban public transport, which their growth rate increased 1.8 points, to 4.3%. On the other hand, BINE prices increased slightly in September, 0.1%, after the stabilization of the previous month.

In inter-monthly terms, the CPI has increased 0.2% in September 2017, compared to the zero variation of the same month of 2016. By components, the prices of services fell 0.7%, one tenth less than a year before; those of the BINE increased 1.4%, one tenth more than in September 2016; those of the feeding increased 0.2% (-0.8% a year earlier); and those of energy products increased 1%, five tenths less than in September last year.

Within the food group, prices of unprocessed foods recorded in September 2017 a 1.2% inter-monthly rate (-2.6% in the same month of 2016), and those of processed foods a rate of – 0.2% (0% one year before).

The annual rate of the CPI increased in September in twelve autonomous communities and remained unchanged in the other five. The greatest increases occurred in the Community of Madrid (four tenths, up to 1.8%), Andalucía and Comunitat Valenciana (both three tenths, up to 1.8%). The communities that maintained their inflation rate unchanged with respect to the month of August were Cantabria (1.8%), Galicia (1.8%), Castilla y León (1.7%), Principality of Asturias (1.5 %) and Canary Islands (1.4%).

The interannual rate of the CPI to constant taxes stood at 1.8% in September, as was the general CPI.

The INE has also published the harmonized CPI (HICP) for the month of September, whose year-on-year variation rate stands at 1.8%, two tenths lower than in August. On the other hand, the rate advanced by Eurostat for the whole of the euro zone stands at 1.5% in September, identical to that of the previous month, resulting in an inflation differential for Spain with respect to the euro zone of 0.3 points, two tenths lower than August.



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