• Prices rise for the first time in a year, but remain at very moderate levels
  • All components, especially the most volatile, such as energy and fresh food, explain the rise

The Consumer Price Index (CPI) increased 0.1% in June in the interannual rate, 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 and is three tenths higher than that registered in May. This acceleration in prices is mainly explained by the upward evolution of food prices, especially unprocessed, by energy and BINE (non-energy industrial goods) and, to a lesser extent, by services. It is the first time in a year that positive inflation rates have been recorded, but these are very moderate increases that reflect the general improvement in the economic situation and the recovery in consumption in particular.

The prices of energy products registered an interannual rate of -5.7% in June, 0.7 points higher than the previous month. This softening in the fall was mainly due to electric power, which posted a monthly rise of 4.6%, compared to the 2.1% decrease a year earlier. The interannual rate was 3.5%, compared to -3.2% last May. Electricity by itself has been responsible for more than a tenth of the rise in global inflation; On the other hand, fuels and fuels fell 0.7% in the month, so their year-on-year rate fell 1.4 percentage points to -9.1%. The annual rate of change in the prices of unprocessed food has accelerated by 0.9 pp in June, to 3.2%. This rise is mainly due to fresh fruits and other items such as fresh fish and potatoes.

Core inflation (which excludes the most volatile elements of the CPI such as fresh food and energy) rose one tenth in June, to 0.6%. This acceleration is explained by the bullish behavior of all its major components, especially the BINE, which increased their annual rate by two tenths, up to 0.3%, as a result of the rise in automobiles, which increased its annual rate by half a point. , up to 3.5%, and clothing and footwear, which increases this rate by one tenth, up to 0.5%. Processed food has increased its interannual rate by three tenths, up to 1.2%, due to oil inflationary pressures that raise its annual rate by almost 5 points, to 21.9%.

The prices of the services group show an annual growth of 0.7%, one tenth above that corresponding to the previous month, an acceleration that rests on the heading of tourism and hospitality, whose annual rate increased one tenth, to 1.2%.

In month-on-month terms, the CPI increased by 0.3% in June, compared to zero growth in the same month of 2014. This advance is explained by the increase in prices of unprocessed foods, especially by fresh fruits (7.3%) , fresh and frozen fish (1.7%) and potatoes (3.4%), partially offset by the drop in fresh vegetables (-4.8%). Due to the rise in energy products (0.7%), due to the increase in electricity (4.6%), and due to services, especially organized travel (4.2%).

The annual CPI rate in June increased in all autonomous communities. In five it is higher than the national one, the Balearic Islands (0.4%), Catalonia (0.3%) and the Valencian Community, the Basque Country and La Rioja (0.2%). Inflation in the Community of Madrid coincides with the national index. In the rest of the Autonomous Communities their inflation is below the national rate, highlighting Extremadura, Castilla- La Mancha and the Canary Islands, with -0.3%. On the other hand, the annual rate of the CPI at constant taxes stood at 0.1% in June, the same as the general CPI.

The INE has also published the harmonized CPI (IPCA) for the month of June, whose annual rate stands at 0.0%, compared to -0.3% the previous month. If this rate is compared with that estimated by Eurostat for the euro area as a whole in June (0.2%), the inflation differential favorable to Spain would worsen four tenths to 0.2 percentage points.

In summary, the annual variation rate of the CPI has increased by three tenths in June, due to the evolution of all its major components, especially the most volatile, unprocessed food and energy products. Core inflation has risen one tenth, to 0.6%. Therefore, the upward trend in prices continues, but within low levels. Our inflation continues to be lower than that of the Eurozone, with the consequent positive effect on the competitiveness of the Spanish economy, which will continue to favor exports, production and employment.

Source of the new