Spain January Inflation Rate Revised Up to 0.6%

Spain's consumer price inflation came in at 0.6 percent year-on-year in January 2018, slightly above market expectations of 0.5 percent and compared with the previous month's figure of 1.1 percent. Still, it was the lowest inflation rate since September 2016.
INE | Joana Ferreira | 2/15/2018 8:28:00 AM
Year-on-year, prices rose at a slower pace for: food and non-alcoholic beverages (1.3 percent vs 1.7 percent in December); transport (1.8 percent vs 1.9 percent); miscellaneous goods and services (0.4 percent vs 0.7 percent); health (0.3 percent vs 0.4 percent); and alcoholic beverages and tobacco (1.3 percent vs 1.7 percent). In addition, housing and utilities cost dropped 2 percent after increasing by 1.3 percent in the previous month, dragged by a decline in electricity prices. Additional downward pressure came from: recreation and culture (-0.5 percent vs -0.6 percent); and furnishings, household equipment and routine maintenance of the house (-0.3 percent vs -0.5 percent).

Meanwhile, inflation was unchanged for both clothing and footwear (at 0.5 percent) and education (at 0.7 percent), while it picked up for restaurants and hotels (2 percent vs 1.9 percent) and communications (0.9 percent vs 0.2 percent).

Annual core inflation, which excludes volatile items such as food and energy, stood at 0.8 percent in January, the same as in the previous month.

On a monthly basis, consumer prices fell by 1.1 percent, unrevised from the preliminary estimate and compared with a flat reading in December. Prices fell mostly for clothing and footwear (-15.3 percent), housing and utilities (-0.5 percent) and recreation and culture (-1.4 percent).

The harmonised index of consumer prices rose by 0.7 percent from the previous year, but declined by 1.5 percent month-over-month.

Spain January Inflation Rate Revised Up to 0.6%