- The rise of two tenths in the annual rate responds to all major components of the CPI, except for processed food
- Non-energy industrial goods and services boost one tenth core inflation, up to 0.9%
- The inflation differential with the euro zone remains favorable to Spain and stands at 0.9 points
The Consumer Price Index (CPI) decreased 0.7% in October on a year-on-year basis, according to data published by the National Institute of Statistics (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 for processed food, whose inflation rate does not vary.
The prices of energy products in October registered a year-on-year rate of -13.1%, compared to -13.6% in the previous month. The smallest decrease responded to fuels and fuels, which moderated the tenth year-on-year rate of decline to 15.6%. Electric power experienced a year-on-year decline of 6.4%, higher by one tenth than the previous month.
The annual variation rate of 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 a year-on-year increase of 29%, although this rate is moderating in recent months and in October it was half a point lower than in September.
Core inflation (which excludes the most volatile elements of the CPI, such as fresh food and energy) increased 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 cars and clothing and footwear, and that of services to that of telephone services and interurban public transport, especially to the air transport item that although its price has been reduced, has done so in smaller amount than in the same month of 2014.
In inter-monthly terms, the CPI increased 0.6% in October. This increase is explained by the increase of 3.2% of the BINE, especially the rubric of clothing and footwear, which shows a monthly increase of 11.1%, due to the seasonal nature derived from the pricing of the autumn season -winter. Unprocessed food (1.3%) has also contributed to this increase, due to fresh fruits (3.8%) and fresh vegetables (3.4%), and to a lesser extent, processed foods (0 , 1%), especially oils (3.7%).
The annual inflation rate increased in October in all the autonomous communities except in 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 CPI rate for constant taxes stood at -0.7% in October, the same as that recorded by the General CPI.
The INE has also published the harmonized CPI (IPCA) for the month of October, whose annual rate is -0.9%, two tenths higher than the previous month. If this rate is compared with that estimated by Eurostat for the whole of the euro zone in October (0.0%, compared to -0.1% in September), the inflation differential favorable to Spain moderates a tenth , up to -0.9 percentage points.
