• Excluding the most volatile products, core inflation remains stable for the third consecutive month
  • Tourism and hospitality up 0.8%, two tenths more, for organized trips
  • The differential with the euro zone improves by two tenths and stands at 0.8 points, which favors competitiveness

The Consumer Price Index (CPI) decreased 0.4% in November on a year-on-year basis, according to figures published by the National Statistics Institute (INE), in line with what was advanced at the end of November. The reduction is three tenths higher than October, an evolution that is explained by the most volatile components of the CPI, energy products and unprocessed food, especially the former. In relation to the previous month, the general CPI decreased 0.1% in November, compared to the 0.2% increase recorded in the same month of 2013.

The prices of energy products registered a negative year-on-year rate of -3.2% in November, compared to the 1.1% decrease in the previous month. This intensification of the fall has contributed its main components, fuels and fuels and the electricity tariff. Fuels and fuels have increased the annual fall rate by 1.2 points, up to 4.5%. The annual rate of the electricity tariff has increased from 4.9% in October to 0.3% in November, as a result of a monthly fall of 4.4% in November of the current year compared to a stabilization in the same month of 2013.

The interannual variation rate of unprocessed food prices was reduced by half a point in November, to 1.2%, a slowdown that responds to items of fresh vegetables, fresh and frozen fish, poultry and fresh fruits .

Core inflation (excluding the most volatile elements of the CPI, fresh food and energy) remained at -0.1% in November, for the third consecutive month. This stability is explained by the behavior of BINES (non-energy industrial goods) and processed food, which maintained their annual rate at -0.3% and -0.2%, respectively, while services inflation rose by tenth, up to 0.2%.

Within the services group, the slight increase in inflation is mainly derived from the tourism and hospitality sector, whose annual rate has increased from 0.6% in October to 0.8% in November. This acceleration is explained, in turn, by the upward evolution of the organized travel item, which has grown by 3%, 2.8 points more than in the previous month. In the opposite direction, interurban public transport moderates its tenth annual variation rate, up to 0.7%.

BINES prices maintain their rate at -0.3%, for the third consecutive month, with a slight acceleration of clothing and footwear and cars, one tenth in both. Processed food, including beverages and tobacco, registers an annual rate in November of -0.2%, equal to that of the previous three months, stability that is explained by an increase in items of oils, mineral water and soft drinks and juices, It compensates for moderation in milk and milk products and sugar.

In inter-monthly terms, the CPI decreased 0.1% in November, compared to the 0.2% increase in the same month last year. This decrease is explained by the lowering of energy products, unprocessed food and services, partially offset by the higher prices of BINES and, to a lesser extent, processed food. The prices of unprocessed food were reduced by 0.5% compared to the month of October, mainly due to declines in fresh fruits and fresh vegetables. The prices of processed food increased slightly, 0.1%, due to the increase in oils and fats.

Energy products recorded a 2.9% month-on-month fall in November, as a result of a 4.4% decrease in the electricity tariff and 2.3% of fuels and fuels. BINES prices increased 1.5% compared to the previous month, due to the seasonal increase in clothing and footwear (5.1%) and the slight increase in the price of cars (0.1%).

The prices of the services were reduced by 0.2% in November in an inter-monthly rate, a drop that is mainly explained by the tourism and hospitality item (-0.7%). This heading also highlights the decrease in the price of organized trips (-2.6%) and hotels, cafes and restaurants (-0.5%), as well as the stability in urban public transport prices and the intercity.

Of the 17 autonomous communities, six registered in November annual inflation rates above the national average: Balearic Islands, Catalonia and the Basque Country (-0.1%) and Galicia, La Rioja and Navarra (-0.3%). Castilla y León and the Community of Madrid had the same rate as the national average (-0.4%) and the rest of the communities below average rates.

The annual rate of the CPI to constant taxes stood at -0.4% in November, as was the general CPI, three tenths lower than the previous month. The INE has also published the harmonized CPI (IPCA) for November, whose annual rate is -0.5%, compared with -0.2% in the previous month. If this rate is compared with that estimated by Eurostat for the whole of the euro zone in November (0.3%), the inflation differential favorable to Spain improves by two tenths and stands at 0.8 percentage points.

In summary, the inflation rate has decreased in November due to the evolution of prices of energy products and unprocessed foods, while core inflation remains stable. The inflation differential is still favorable to Spain compared to the euro zone, which is making it possible to obtain competitiveness gains and boost our exports.

Source of the new