Spain Annual Inflation Rate Confirmed at 1.5% in April


The annual inflation rate in Spain increased to 1.5 percent in April 2019 from 1.3 percent in the previous month and matching a preliminary estimate and market expectations. It was the highest inflation rate in five months, mainly driven by cost of tourist packages and transportation.

Year-on-year, prices went up further for transport (3.2 percent from 3.0 percent in March), namely air transportation; hotels, cafes & restaurants (2.3 percent from 1.8 percent), mostly due to accommodation services; clothing & footwear (1.1 percent from 0.9 percent); and health (1.0 percent from 0.9 percent). Additionally, cost of recreation & culture rebounded (0.3 percent from -1.6 percent), boosted by tourist packages.

Meanwhile, prices eased for food & non-alcoholic beverages (0.8 percent from 0.9 percent), led by fresh pulses & vegetables (5.9 percent vs 7.8 percent); housing & utilities (2.0 percent from 2.1 percent), driven by electricity & gas (3.6 percent vs 0.7 percent); miscellaneous goods & services (1.4 percent from 1.5 percent); communications (0.1 percent from 1.4 percent); and alcoholic beverages & tobacco (0.7 percent from 1.0 percent). Also, inflation was steady for education (at 1.0 percent, the same as in March) and furnishings (at 0.6 percent). 

Annual core inflation, which excludes volatile items such as food and energy, rose to 0.9 percent in April from 0.7 percent in March. 

On a monthly basis, consumer prices went up 1.0 percent, after a 0.4 percent gain in the prior month and in line with a flash estimate and market consensus. Main upward pressure came from clothing & footwear (10.5 percent from 4.4 percent), due to the the new spring-summer season.

The harmonized index of consumer prices advanced 1.6 percent year-on-year (from 1.3 percent in March), and increased 1.1 percent from the previous month (from 1.4 percent in March).

Spain Annual Inflation Rate Confirmed at 1.5% in April


INE | Stefanie Moya | stefanie.moya@tradingeconomics.com
5/14/2019 7:30:09 AM