The Consumer Price Index (CPI) increased 0.1% in the annual rate in June, one tenth less than in May, according to data published by the National Statistics Institute (INE). This slight moderation in the inflation rate responds fundamentally to food and energy products, especially electric power and certain food items such as oils and fats, fresh fruits and potatoes, which continue to discount the strong upturn registered this year. a year before. Non-Energy Industrial Goods (BINES) have maintained their annual rate, while services have slightly increased it. Compared to the previous month, the general CPI did not change in June.

The annual rate of the prices of the unprocessed food it fell 1.1 percentage points in June to -3.8%. This moderation is due to various items such as potatoes and fresh fruits. Its annual rate has moderated significantly, discounting the strong rebounds registered a year earlier as a consequence of the adverse weather in the months of the second quarter of 2013. Potatoes and their preparations have reduced their annual rate by 9.8 points and fruits fresh by 4.1 points, down to -19.7% and -9.6%, respectively. In general, most items of fresh food have moderated their annual variation rate.

The prices of the energy products They registered an annual rate of 2.6% in June, four tenths less than last May. This deceleration is due to the electricity rate and in that month the overcharges were returned to consumers in the first six months of the year. The annual rate for this subclass has dropped from 9.4% to 7.1%, as a result of a 2.1% monthly drop. Fuels and fuels, its main item, have increased their interannual variation rate by 0.3 percentage points, to 1.1%. This evolution is in line with the increase in oil prices.

The Underlying inflation it remained at 0.0% in June, for the second consecutive month. This stability has been due to the fact that the slight rise in services has been offset by the opposite evolution of processed food. BINES have shown a neutral position by maintaining their annual rate.

The services They increased their annual inflation in the month of June by one tenth, up to 0.3%, largely due to the interurban public transport heading, which increased its annual rate by 0.8 percentage points, to 4.3%, as a result of a new rise in air transport (3.1%). Tourism and hospitality maintains its annual inflation rate at 0.5%. BIN prices fell 0.5% in the annual rate, the same as the previous month.

The processed food, including drinks and tobacco, moderates its annual rate in June by four tenths, down to 0.2%. This slowdown is mainly explained by the heading of oils and fats, which recorded an annual rate of -14.4%, 2.6 points lower than that of May. To a lesser extent, the lower variation rate of other items such as sugar, alcoholic beverages and milk has influenced.

The CPI remained stable in June with respect to the previous month, which is explained by the lower prices of processed food and BINES, which completely offset the increase in the cost of services and fresh food; energy products did not vary. Fresh food increased by 0.4% in the month and processed food decreased by 0.3%, mainly as a result of decreases of 4.3% in potatoes, in fresh vegetables and legumes (-3.3%), in oils and fats (-2.7%) and in sugar (-1.8%) and the increase of 5.4% in fruits.

Services increased by 0.3%, mainly due to tourism and hospitality (0.7%) and, within this heading, by organized travel items (4.3%) and hotels and other accommodation (3.6 %), as well as for interurban public transport (1.6%), especially for air transport (3.1%) as well as automobile insurance (1.9%). The prices of energy products did not change in the month, as the growth of 0.8% in its main item, fuels and fuels, was fully offset by the fall in the electricity rate (-2.1%). BIN prices fell 0.4% mom, mainly due to clothing and footwear, which fell 1.3% due to anticipation of summer sales.

Of the 17 Autonomous Communities, four have registered in June an annual inflation rate higher than the national average. The most inflationary were: the Balearic Islands and the Basque Country (0.5% both), Catalonia (0.4%) and Galicia (0.3%). In Castilla y León it has coincided with the national average (0.1%) and the rest of the communities have lower rates than the national average: Aragon, the Valencian Community, Madrid and Rioja with zero inflation and the rest with negative inflation, highlighting as the most deflationary Extremadura (-0.5%).

The annual rate of the CPI for constant taxes stood at 0.1% in June, as did the general CPI, one tenth lower than the previous month. The underlying constant tax has remained at 0.0%. The annual rate of energy was 2.7%, compared to 3% in May, and that of unprocessed food was -3.8% (-2.7% in May). Within the core of inflation underlying constant taxes, BINES prices have remained at -0.5% year-on-year, processed foods rose 0.1%, compared to 0.5% the previous month, and those of services increased by 0.3%, one tenth more than in the previous month.

The INE has also published the harmonized CPI (IPCA) for June, whose annual rate stands at 0.0%, two tenths lower than the previous month. If this data is compared with the annual rate estimated by Eurostat for the euro area as a whole (0.5%), the inflation differential continues to be favorable to Spain, at 0.5 percentage points, two tenths more favorable than in the last month.

In summary, inflation has moderated a tenth in June due to the evolution of the prices of some of the most volatile items in the CPI, such as unprocessed food, and energy prices, especially the electricity rate. This price containment is valued positively, since it facilitates the continuation of wage moderation, which has a favorable impact on the competitiveness of our economy and exports. In addition, it allows the purchasing power of wages and pensions to be maintained, which favors domestic consumption. In short, it is a factor that favors the recovery of production and employment.

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