Spain Inflation Rate Revised Down to 1.1%


Consumer prices in Spain increased 1.1 percent year-on-year in December of 2017, below a preliminary reading of 1.2 percent and 1.7 percent in November. It is the lowest inflation rate since November of 2016, mainly due to a slowdown in cost of fuels, electricity and heating oil.

Year-on-year, prices rose less mainly for transport (1.9 percent compared to 3.5 percent in November), mainly fuels; housing (1.3 percent compared to 2.5 percent), mainly electricity and diesel for heating; and food and non-alcoholic beverages (1.7 percent compared to 2.2 percent), mainly fruits and vegetables. Also, cost of recreation and culture declined 0.6 percent, following a 1.2 percent rise in November, mainly due to tourist packages. On the other hand, clothing andf footwear made the highest upward pressure, rising 0.5 percent, following a 0.4 percent increase in November. 

Annual core inflation, which strips out volatile food and energy prices, was steady at 0.8 percent.

Among regions, Melilla (1.4 percent) had the highest inflation rate and Ceuta, La Rioja, Murcia and Navarra the lowest (0.6 percent each). In Madrid, the inflation was 1.2 percent and in Catalonia it was also 1.2 percent. 

On a monthly basis, consumer prices were flat, compared to expectations of a 0.1 percent rise. 

The EU-harmonized index rose an annual 1.2 percent, below an earlier estimate of 1.3 percent and 1.8 percent in November. The monthly rate was also flat.

Spain Inflation Rate Revised Down to 1.1%


INE | Joana Taborda | joana.taborda@tradingeconomics.com
1/12/2018 8:29:33 AM