Inflation in Spain Down to 2.9% in November


The annual change for the overall Consumer Price Index (CPI) in November was 2.9% six tenths lower than that registered in October, reported the National statistics Institute. Monthly change of the overall index is –0.1% while the annual change of core inflation decreased two tenths and stands at 2.3%.

The groups that most contributed in this drop were: transport, recreation and culture, communication and housing. In transport, the index experienced an annual decrease of more than three points standing at 3.1% due to the drops in prices of the fuels and lubricants, that increased in November 2011, and motor cars mainly due to the effect of Fuel-Efficient Vehicle Incentive Program (PIVE). Recreation and culture presented an annual change of 1.2%, eight tenths lower than October, mainly due to the decrease in prices of recreation and sport services that increased the previous year, and package holidays that decreased more than in 2011. Communication decreased its rate one point, standing at –2.7%, mainly due to the decrease in prices of telephone services. Housing dropped 5.8%, three tenths below the previous month. This behaviour was due to the drop in prices of the heating fuels.

Despite the decrease of the annual change of the CPI, it is worth noting the increase in price in health and food and non-alcoholic beverages. Health increased three points up to 13.5%. This rise was due to the stability in prices of medical and other pharmaceutical products, which decreased in November 2011. Food and non-alcoholic beverages, with an annual variation of 2.9% is four tenths higher than the previous month. The areas highlighted by their influence in this increase were edible oils, fresh vegetables, poultry meat and fresh potatoes and potatoes preparations. 

INE | Nuno Fontes | nuno@tradingeconomics.com
12/14/2012 12:43:30 PM