• Non-energy industrial goods and services continue to rise and raise underlying inflation by two tenths
  • The differential with the euro zone remains at 0.9 points favorable to Spain, which favors competitiveness

The Consumer Price Index (CPI) decreased 1.3% in January year-on-year, according to figures published by the National Institute of Statistics (INE). This fall is less than one tenth to that advanced by the INE at the end of that month. The reduction is, therefore, three tenths compared to December, which is explained by the most volatile components of the CPI, especially energy products. In relation to the previous month, the general CPI decreased 1.6%, compared to the 1.3% decrease registered in the same month of 2014.

The prices of energy products registered an interannual rate of -11.4% in January, a decrease that is almost three points higher than the previous month (-8.5%). This greater fall is due exclusively to the departure of fuels and fuels, which intensifies the annual fall rate by 4.7 points, up to 16.5%, in line with the evolution of oil prices

The interannual variation rate of unprocessed food prices has fallen 0.3 points in January, to -0.7%. This moderation responds, to a large extent, to fresh fruits and fresh fish.

Core inflation (excluding the most volatile elements of the CPI, fresh food and energy) increased two tenths in January, to 0.2%. This acceleration is explained by the behavior of its three major components. Services increased their annual rate by two tenths, up to 0.5%, and BINES (non-energy industrial goods) and processed food increased said annual rate by one tenth, to -0.1% in both cases.

Within the group of services, the increase in inflation responded to the rubric of tourism and hospitality, whose annual rate goes from 1% in December to 1.1% in January. This acceleration is explained, in turn, by the upward evolution of the organized travel item, which increases 5.3%, one point more than in the previous month, and also by interurban public transport, which increases its annual rate 2.7 points, up to 4.1%, due to the increase in air transport (3.2% in the month).

BINES prices increased their annual rate by one tenth in January, to -0.1%. This slight acceleration responds to the cost of cars and, to a lesser extent, to medicines and therapeutic material. Processed food, including beverages and tobacco, has an annual rate of -0.1%, after having maintained the -0.2% for the previous five months. This increase is explained by the acceleration of items such as oil, tobacco, alcoholic beverages and mineral water, soft drinks and juices, which compensates for moderation in milk and sugar.

In inter-monthly terms, the CPI decreased 1.6% in January, compared to the 1.3% fall in the same month of 2014. This decrease is explained by the lowering of energy products, especially fuels and fuels, of the BINES, especially clothing and footwear, and, to a lesser extent, services, particularly tourism and hospitality. The prices of unprocessed food increased 0.5% compared to the month of December due to increases in potatoes, legumes and fresh vegetables, fresh fish and poultry, partially offset by declines in fresh fruits and meat Sheep The prices of processed food increased by 0.2%, due to the increase in the price of oil, tobacco, mineral water, soft drinks and juices and alcoholic beverages, partially offset by the reduction in the price of sugar and milk .

Energy products registered a 3.3% month-on-month fall in January, as a result of a 5.9% decrease in fuels and fuels, partially offset by the 3.6% rise in the electricity tariff. BINES prices decreased 4.6% compared to the previous month, as a result of the seasonal fall in clothing and footwear (-15.2%).

The prices of the services decreased 0.1% in January compared to the previous month, a decrease that is mainly explained by the tourism and hospitality item (-1.2%) and by the telephone service (-0.5% ). Within tourism and hospitality, the seasonal fall in organized travel prices stands out (-7.9%).

The annual CPI rate in January decreased in all the autonomous communities, in four inflation rates were recorded above the national average: Catalonia (-0.9%), Basque Country (-1%), Balearic Islands (-1, 1%) and La Rioja (-1.2%). Madrid had the same rate as the national average (-1.3%) and the rest of the communities below average rates. The lowest corresponded to Castilla-La Mancha, with -2%. The annual CPI rate for constant taxes stood at -1.3% in January, as was the general CPI, three tenths lower than the previous month.

The INE has also published the harmonized CPI (CPI) corresponding to the month of January, whose annual rate stands at -1.5%, compared to -1.1% in the previous month. If this rate is compared with that estimated by Eurostat for the whole of the euro zone in January (-0.6%), the inflation differential favorable to Spain remains at -0.9 percentage points the previous month.

In summary, the annual variation rate of the CPI has decreased in January due to the evolution of prices of energy products and unprocessed foods, that is, the most volatile elements. Excluding these, core inflation has increased two tenths, up to 0.2% thanks to non-energy industrial goods and services. The moderation of prices allows improvements in the purchasing power of income and, in general, of the costs of the economy, which favors recovery and job creation. The inflation differential is still favorable to Spain compared to the euro zone, which produces price-competitiveness gains and boosts our exports.

On the other hand, the INE has updated in January the weights of the different items that make up the shopping basket of the CPI, as it usually does every year in that month. The modifications have been of small importance, being processed foods, energy products and BINES the groups that have increased their weight in the shopping basket: 0.4% the first and 0.3% energy and BINES. These changes have occurred to the detriment of the weight loss of fresh food (-0.6%) and services (-0.4%).

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