• Core inflation, which excludes the most volatile elements of the CPI, rises two tenths, up to 1.3%

The Consumer Price Index (CPI) decreases 0.2% in June with respect to the previous month and the interannual rate remains at 1.9%. This stability is due to the fact that the moderation in the prices of fuels and fuels and, to a lesser extent, of non-energy industrial goods fully compensates for the upward trend in food and services.

Core inflation grew two tenths, up to 1.3%, although the rise is temporary since it responds, mainly, to a "base effect" derived from the sharp drop in the price of tobacco a year earlier and the stability in last june.

The month-on-month decrease in the CPI in June is explained by the falls in energy products and non-energy industrial goods. The prices of energy products decreased by 2.4%, especially due to the evolution of their main item, fuels and fuels, which fell by 3.3%. The prices of non-energy industrial goods decreased by 0.3%, a fall that was due to the prices of clothing and footwear (0.9%) since the summer sales were anticipated to June in some establishments.

Fresh foods increased by 1.2%, as a result of the strong growth of fresh fruits (9.4%), while there were falls in fresh vegetables and legumes (3.4%) and in sheep meat (1 ,one%). On the other hand, processed food did not change compared to the previous month and services increased their prices by 0.3% compared to May, mainly due to intercity transport (0.9%) and tourism and hospitality (0.6 %).

Compared to a year earlier, food, processed and unprocessed food and services increased their growth rate. The biggest rise occurred in processed food, whose annual rate rose by eight tenths (to 3.8%) and in fresh food, which grew to 2.5% from 1.1% in May. The increase in the first group responds to the combination of the stability of tobacco prices in June and the 6.4% drop a year earlier. Services increased their annual rate by one tenth, to 1.2%, highlighting the increases in urban public transport (9.5%) and intercity (4.2%).

On the contrary, it is worth mentioning the slowdown in annual growth in the prices of energy products, from 8.3% in May to 6.2% in June, due to the moderation in the prices of fuel and fuel and non-energy industrial goods, which moderate their annual rate from 0.2% in May to 0.1% in June due to the lower prices for clothing and footwear.

The stability of the annual rate of the general index in June should be positively valued as it occurs despite the growth in tobacco prices, which has an inflationary impact of almost two tenths. In the absence of this tobacco effect, core inflation would have remained at 1.1% last May.

The INE has also published the harmonized CPI (IPCA) for June, whose annual rate stands at 1.8%, one tenth below that registered in the previous month. This rate coincides with that of the IPCA leading indicator published on June 28. When compared to the estimated annual rate for the Monetary Union, the differential would continue to be favorable to Spain and would stand at six tenths, compared to -0.5 percentage points the previous month.



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