• The acceleration registered in January is explained by the rise in the prices of electricity and fuel
  • Core inflation, which excludes the most volatile elements of the CPI, increased one tenth, to 1.1%

The Consumer Price Index (CPI) increased in January 2017 by 3% in the interannual rate, 1.4 points more than in December 2016, according to figures published by the National Statistics Institute (INE). The rate that coincides with that advanced by the INE at the end of last month. This acceleration is mainly explained by the evolution of the prices of energy products and, in particular, of electricity and fuels. In month-on-month terms, the general CPI decreased 0.5% in January, compared to the 1.9% decrease in the same month of 2016.

The prices of energy products grew 17.5% year-on-year in January, after the 5.3% increase registered in December. This evolution is explained by the rebound in electricity prices, which went from growing 3.7% year-on-year in December to 26.2% in January, as well as in fuels and fuels, which went from growth of 6% to 13.9%, largely due to the base effect derived from the sharp decline experienced in January 2016.

Food inflation stood at 1.1% in December, three tenths above that of the previous month, due to the acceleration in the prices of unprocessed food, six tenths to 2.7%, as well as to the slight acceleration in the prices of processed food, beverages and tobacco, one tenth to 0.3% year-on-year. Notable in the acceleration of prices of unprocessed food is the increase of more than ten points in the growth rate of fresh vegetables, to 17.9%.

Core inflation (which excludes unprocessed food and energy, which are the most volatile elements of the CPI) increased one tenth in January, to 1.1%, due to the acceleration in the prices of non-energy industrial goods ( two tenths, up to 0.8%) and processed food (one tenth, up to 0.3%), partially offset by the slower growth rate of service prices (1.3%, compared to 1 ,6th of December). In month-on-month terms, the CPI decreased 0.5% in January 2017, compared to the 1.9% decrease in January 2016. By component, the prices of energy products rose 4.6%, after the decrease in the 6.2% from a year earlier; those of services decreased by 0.3%, after the stabilization of prices in January 2016; those of non-energy industrial goods fell by 4.5%, a drop three tenths less marked than that of January the previous year; and those of food increased 0.7%, two tenths more than in January 2016.

Within the food group, the prices of unprocessed food registered a month-on-month rate of 1.8% in January 2017, five tenths higher than that of the same month in 2016, while those of processed foods rose 0.2 %, one tenth more than a year earlier.

The interannual rate of the CPI increased in January in all the autonomous communities. The highest increases were recorded in Castilla y León (1.8 points, up to 3.4%) and in Castilla-La Mancha and the Valencian Community (1.7 points in both, up to 3.3% and 3%, respectively ). The lowest increases corresponded to Comunidad Foral de Navarra (1.1 points, up to 2.9%) and the Canary Islands and Catalonia, both with increases of 1.2 points (up to 2.5% and 3.1%, respectively) .

The annual rate of the CPI at constant taxes stood at 3% in January, as did the general CPI.

The INE has also published the harmonized CPI (IPCA) corresponding to the month of January 2017, whose interannual variation rate stands at 2.9%, 1.5 points higher than that of December 2016. For its part, the rate advanced by Eurostat for the euro area stood at 1.8%, compared to 1.1% the previous month, and the harmonized rate at 0.9%.

The CPI published today by the INE is prepared with reference to the new 2016 base. Also, as every year, the INE has updated the weights of the articles that make up the CPI, reflecting both changes in consumption patterns and methodological reviews of the index. and improvements in the estimation of the consumption expenditure of the different articles.



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