Spain Annual Inflation Rate Confirmed at 2.2% in August

The annual inflation rate in Spain increased 2.2 percent in August of 2018, unchanged from the previous month, matching the preliminary estimate and in line with market consensus. Prices rose faster mainly due to food and non-alcoholic beverages and housing.

Year-on-year, cost advanced further for food & non-alcoholic beverages (2.0 percent compared to 1.8 percent in July), namely fruits; housing (4.3 percent compared to 3.7 percent); mostly due to higher cost of electricity and miscellaneous goods & services (1.0 percent compared to 0.9 percent). Meanwhile, prices slowed for transport (5.2 percent compared to 5.9 percent); restaurants & hotels (1.8 percent compared to 2.0 percent); clothing & footwear (0.9 percent compared to 1.0 percent); health (a flat reading compared to 0.1 percent) and communications (2.6 percent compared to 2.7 percent). Additionally, cost of recreation & culture declined faster (-1.1 percent compared to -0.6 percent). Also, inflation was steady for furnishings (at 0.3 percent, the same as in July) and education (at 0.8 percent).

Annual core inflation, which excludes volatile items such as food and energy, fell to 0.8 percent in Agust from 0.9 percent in July.

On a monthly basis, consumer prices went up 0.1 percent, rebounding from a 0.7 percent fall in the prior month, lower than a preliminary estimate of 0.2 percent and below market expectations of a 0.2 percent gain.  Positive contributions came mainly from housing (0.6 percent); recreation & culture (0.7 percent); restaurants & hotels (0.2 percent) and transport (0.2 percent).

The harmonized index of consumer prices rose 2.2 percent year-on-year, easing from a 2.3 percent increase in July and advanced 0.1 percent from the prior month.

Spain Annual Inflation Rate Confirmed at 2.2% in August

INE | Stefanie Moya |
9/12/2018 7:32:57 AM