Spain Inflation Rate Down to 2.7 Percent in January


In January of 2013, the inflation rate was posted at 2.7 percent, two tenths lower than that recorded in the previous month. The annual rate of core inflation increased one tenth and stands at 2.2 percent. The monthly change of the overall index is -1.3 percent.

The annual growth rate of Consumer Prices Index in January was 2.7 percent, two tenths below that recorded in December. The most influential groups in the decline in the annual rate are: Housing, whose variation decreases over a point to 4.4 percent. This decrease is mainly due to the drop in electricity prices over the value recorded last year. Transportation has an annual change of +2.2 percent, nine tenths less than in December, mainly due to the rise in prices of fuels and lubricants. Medicine, with a variation of 12.1 percent, more than one point lower than the previous month due to lower prices of pharmaceuticals.

Despite the decline in the annual rate of CPI, the inflation rate increased for the groups: alcoholic beverages and tobacco, which increases its rate nearly three points putting it at 8.0 percent, mainly due to higher prices of tobacco. Communications has an annual growth rate of -1.8 percent and stands nine tenths above the previous month. This behavior is explained by the lower prices of services phone from a year earlier.
 
The annual growth rate of core inflation (overall index excluding unprocessed food and energy products) increased one tenth to 2.2 percent, so that the difference with the overall index falls to five tenths.
 
The Index of Harmonized Consumer Prices annual rate stood at 2.8 percent, two tenths lower than in the month of December of 2012.
 

INE | Nuno Fontes | nuno@tradingeconomics.com
2/15/2013 9:48:35 AM