Spanish Deflation Rate Confirmed at -1%

Consumer prices in Spain declined 1 percent year-on-year in May of 2016, following a 1.1 percent drop in April and in line with preliminary estimates. It is the 10th straight month consumer prices post no growth as housing and transport cost keeps falling although at a slower pace.

Year-on-year, housing prices declined at a slower pace (-6.5 percent following a 7.1 percent drop in April), boosted by higher electricity cost; prices of recreation and culture fell 1.9 percent (-2.6 percent in April) and transport prices dropped 4.9 percent (-5.1 percent in April) due to higher cost for fuels and lubricants.

In addition, prices of communication (1.8 percent following 3.3 percent in April) and food and non-alcoholic beverages (1.7 percent following 2 percent in April) rose at a slower pace.

On a monthly basis, consumer prices went up 0.5 percent, slowing from a 0.7 percent increase in April and lower than preliminary figures of a 0.6 percent rise. Biggest upward pressure came from transport cost (prices up 1.5 percent), followed by clothing and footwear (prices up 2.6 percent), food and non-alcoholic beverages (prices up 0.3 percent), housing (prices up 0.2 percent) and hotels, cafes and restaurants (prices up 0.2 percent). In contrast, the biggest downward pressure came from recreation and culture (prices down 0.2 percent).

The harmonized index fell 1.1 percent on the year but gained 0.5 percent from the previous month, matching preliminary estimates.

Spanish Deflation Rate Confirmed at -1%

INE | Joana Taborda |
6/14/2016 8:39:23 AM