• The acceleration of the CPI in services and unprocessed food compensates for the lower rates in processed foods and energy
  • The inflation differential favorable to Spain with respect to the euro zone expands to 0.1 percentage points

The Consumer Price Index (CPI) increased 0.7% year-on-year in November, as in October, according to figures published by the National Statistics Institute (INE). This rate coincides with that advanced by the INE at the end of last month. The stability in the interannual rate of the CPI is due to the fact that the acceleration of the prices of services and unprocessed food compensated for the deceleration of processed food and energy, while the inflation of non-energy industrial goods (BINE) stabilized. The average annual rate was -0.4% in November. In inter-monthly terms, the general CPI increased 0.4%, the same rate as in the same month of 2015.

Energy product prices fell 0.5% year-on-year in November, compared to the stabilization practice recorded in October (0.1%). This evolution is mainly explained by fuels and lubricants, which decelerated 1.2 points, up to 0.2%, and, to a lesser extent, by electricity, which slowed down three tenths, up to 0.6%. .

Food inflation in November stood at 0.4%, one tenth higher than the previous month, due to the acceleration of unprocessed food prices, whose rate increased four tenths, to stand at 0 , 6%. This evolution responds, mainly, to the prices of fresh vegetables and vegetables, which moderated their fall more than four points, to 1.1%. The prices of processed food slowed down one tenth, to 0.3% year-on-year.

Core inflation (which excludes unprocessed food and energy, which are the most volatile elements of the CPI) remained at 0.8% in November, due to the slight acceleration of service prices, of one tenth, up to 1.2%, offset the deceleration of the same magnitude of the prices of processed foods (up to 0.3%), while the BINE maintained their annual growth rate at 0.6%.

In inter-monthly terms, the CPI grew 0.4% in November, as in the same month of 2015. By components, the prices of energy products remained stable, after an increase of 0.7% a year earlier; those of services were reduced by 0.1%, compared to the 0.2% drop in the same month of 2015; those of the BINE increased 1.5%, the same as in November last year; and those of food fell 0.1%, one tenth less than a year earlier.

Within the food group, prices of unprocessed foods registered an inter-monthly rate in November of -0.4%, four tenths higher than in the same month of 2015, while those of processed foods stabilized, compared to the 0.1% rise a year earlier. Within unprocessed food, the prices of fresh vegetables declined 0.3%, compared to the fall of 4.8% a year earlier.

The interannual rate of the CPI decreased in November in eight autonomous communities, remained at six and increased by three, remaining positive levels in all of them. The largest decreases in the interannual rate were recorded in Cantabria, which goes from 0.8% to 0.6%, and Principado de Asturias, which goes from 1.0% to 0.8%, and the biggest increase, in the Canary Islands , which goes from 0.6% to 0.8%. The highest inflation rates were recorded in Catalonia and Navarra (1% and 0.9%, respectively), and the lowest, in La Rioja and Comunidad Valenciana (0.4%, both).

The interannual rate of the CPI to constant taxes stood at 0.7% in November, as was the general CPI.

The INE has also published the harmonized CPI (CPI) corresponding to the month of November, whose annual variation rate stands at 0.5%, as in October. This rate is one tenth lower than that advanced by Eurostat for the euro zone (0.6%, compared to 0.5% in the previous month), resulting in a favorable inflation differential to Spain compared to the euro zone of one tenth , compared to the null differential registered in October.

In summary, the year-on-year rate of the CPI remained at 0.7% in November, offsetting the increases in the rates recorded in the prices of services and unprocessed foods, with decreases in energy products and processed foods Core inflation remains at 0.8% and a favorable inflation differential against Spain against the euro zone is once again registered, one tenth, maintaining the price competitiveness of the Spanish economy.

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