Spain Deflation at 3-Month Low in June

Consumer prices in Spain fell 0.8 percent year-on-year in June of 2016, following a 1 percent drop in May and in line with preliminary estimates. It is the eleventh straight month of no growth in consumer prices although June's decrease was the lowest in three months.

Year-on-year, downward pressure came mainly from prices of housing (-5.5 percent); transport (-4 percent); recreation and culture (-1.6 percent) and health (-0.1 percent). 

In contrast, prices of communication recorded the highest increase (1.8 percent), followed by food and non-alcoholic beverages (1.5 percent); miscellaneous goods and services (1.2 percent); hotels, cafes and restaurants (0.9 percent); clothing and footwear (0.5 percent) and alcoholic beverages and tobacco (0.5 percent). 

On a monthly basis, the CPI advanced 0.5 percent, the same as in May and marked the fourth straight month of growth in consumer prices. Housing prices were up 2.1 percent and made the biggest upward pressure, mainly due to electricity and heating oil. Transport prices rose 1 percent; recreation and culture went up 1 percent boosted by cost of organized trips and food and non-alcoholic beverages increased 0.3 percent due to fresh fruits. 

The harmonized index fell 0.9 percent on the year and gained 0.4 percent on the month, in line with preliminary estimates. 

Spain Deflation at 3-Month Low in June

INE | Joana Taborda |
7/13/2016 8:51:19 AM