Spain Inflation Rate Confirmed at 16-Month Low of 0.8%


The annual inflation rate in Spain fell to 0.8 percent in May 2019 from 1.5 percent in the prior month and matching a preliminary estimate and market expectations. It was the lowest inflation rate since January last year, mainly driven by prices of transport and housing & utilities.

Year-on-year, prices slowed primarily for transport (1.8 percent vs 3.2 percent), namely fuels (3.6 percent vs 6 percent) and air transportation (-10.1 percent vs -0.3 percent); and food & non-alcoholic beverages (0.5 percent vs 0.8 percent in April), owing to vegetables (4.8 percent vs 10.6 percent) and fruit (-6 percent vs -1.9 percent). Also, inflation softened for restaurants & hotels (2.2 percent vs 2.3 percent); miscellaneous goods & services (1.3 percent vs 1.4 percent); clothing & footwear (0.9 percent vs 1.1 percent); health (0.8 percent vs 1.0 percent) and alcoholic beverages & tobacco (0.6 percent vs 0.7 percent). 

In addition, cost fell for housing & utilities (-0.3 percent vs 2.0 percent), mostly due to electricity (-4.9 percent vs 3.7 percent); and recreation & culture (-1.2 percent vs 0.3 percent). 

Annual core inflation, which excludes volatile items such as food and energy, eased to 0.7 percent in May from 0.9 percent in April.

On a monthly basis, consumer prices went up 0.2 percent, after a 1 percent rise in the previous month and in line with a flash estimate and market consensus. Prices slowed mainly for clothing & footwear (2.4 percent vs 10.5 percent) and transport (0.5 percent vs 1.3 percent) while they decreased for housing & utilities (-0.5 percent vs -0.2 percent), on lower electricity expenses (-2.4 percent vs 0.8 percent).

The harmonized index of consumer prices advanced 0.9 percent year-on-year (from 1.6 percent in April), and increased 0.2 percent month-over-month (from 1.1 percent in April).

Spain Inflation Rate Confirmed at 16-Month Low of 0.8%


INE | Luisa Carvalho | luisa.carvalho@tradingeconomics.com
6/12/2019 7:59:21 AM