• The two-tenths rise in the annual rate responds to all major components of the CPI, except processed food
  • Non-energy industrial goods and services drive core inflation one tenth to 0.9%
  • The inflation differential with the euro area remains favorable to Spain and stands at 0.9 points

The Consumer Price Index (CPI) decreased by 0.7% in the interannual rate in October, according to data published by the National Statistics Institute (INE). This rate is two tenths higher than that of September and coincides with that advanced by the INE at the end of last October. Most of the major components of the CPI have contributed to the increase in inflation, except processed food, whose inflation rate does not vary.

The prices of energy products registered an interannual rate of -13.1% in October, compared to -13.6% the previous month. The smallest decrease was due to fuels and fuels, which slowed the year-on-year rate of decline by eight tenths, to 15.6%. Electric power experienced a year-on-year drop of 6.4%, one tenth higher than the previous month.

The year-on-year rate of change in unprocessed food prices rose one tenth in October to 2.7%, mainly due to fresh fruits. The annual rate of processed food, beverages and tobacco remained at 1.4% for the third consecutive month. Oil continues to be the most inflationary item in this group, with an interannual increase of 29%, although this rate has been moderating in recent months and in October it was half a point lower than that of September.

Core inflation (which excludes the most volatile elements of the CPI, such as fresh food and energy) rose one tenth in October, to 0.9%. This slight increase is explained by the prices of BINE (non-energy industrial goods) and services, which accelerated two and one tenths, respectively, to rates of 0.6% and 1%. The acceleration of the BINE responds to the price of automobiles and clothing and footwear, and that of services to that of telephone services and interurban public transport, especially to the item of air transport which, although its price has decreased, has done so. to a lesser extent than in the same month of 2014.

In month-on-month terms, the CPI increased 0.6% in October. This increase is explained by the 3.2% increase in BINE prices, especially in the heading of clothing and footwear, which records a monthly increase of 11.1%, due to the seasonal nature of the autumn season price setting -winter. Unprocessed food (1.3%), due to fresh fruits (3.8%) and fresh legumes and vegetables (3.4%), and to a lesser extent, processed foods (0) have also contributed to this rise. , 1%), especially oils (3.7%).

The annual inflation rate increased in October in all the autonomous communities except Asturias, where it remained at -0.9%. Those with the highest annual CPI rate were the Balearic Islands (-0.2%), Catalonia (-0.3%) and the Basque Country (-0.4%), and those with the lowest rates were Extremadura, Castilla-La Mancha, Castilla y León and Cantabria (-1.2% in all of them). On the other hand, the annual rate of the CPI at constant taxes stood at -0.7% in October, the same as that registered by the General CPI.

The INE has also published the harmonized CPI (IPCA) for the month of October, whose annual rate stands at -0.9%, two tenths above that of the previous month. If this rate is compared with that estimated by Eurostat for the euro area as a whole in October (0.0%, compared to -0.1% in September), the inflation differential in favor of Spain moderates one tenth , down to -0.9 percentage points.

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