Spain Consumer Prices Drop the Least in 8 Months



Spanish consumer prices fell 0.1 percent year-on-year in August 2016, following a 0.6 percent drop in July and in line with preliminary estimates. It was the lowest deflation since December last year, as cost of transport and housing decreased at a slower pace while prices rose for leisure activities and miscellaneous goods and services.

Compared with the same month a year earlier, prices fell at a slower pace for: transport (-1.9 percent from -4.1 percent in July); and housing and utilities (-4.4 percent from -5.6 percent). Additional downward pressure came from health (-0.1 percent).

In contrast, prices rose for: recreation and culture (+0.2 percent from -0.6 percent in July); and miscellaneous goods and services (+1.8 percent from +1.1 percent). Additional upward pressure came from: Communication (+2.7 percent); food and non-alcoholic beverages (+1.8 percent); clothing and footwear (+0.7 percent); and education (+0.5 percent).

Core inflation, which strips out volatile food and energy prices, was recorded at 0.9 percent compared to a reading of 0.7 percent a month earlier.

On a monthly basis, consumer prices advanced 0.1 percent after dropping by 0.7 percent in the previous month, mainly boosted by higher prices of recration and culture (+1.6 percent) and miscellaneous goods and services (+0.6 percent).

The harmonized index fell 0.3 percent on the year and was unchanged on the month. 

Spain Consumer Prices Drop the Least in 8 Months


INE | Joana Ferreira | joana.ferreira@tradingeconomics.com
9/13/2016 7:40:12 AM