Spain Deflation Eases to 0.6% in July


Consumer prices in Spain fell 0.6 percent year-on-year in July of 2016, following a 0.8 percent drop in June and in line with preliminary estimates. It is the twelfth consecutive month of no growth in consumer prices although July's decrease was the lowest in six months. While prices of food and non-alcoholic rose at a faster pace, cost of housing and utilities and transport kept falling.

Year-on-year, downward pressure came mainly from prices of housing (-5.6 percent from -5.5 percent in June); transport (-4.1 percent from -4 percent); recreation and culture (-0.6 percent from -1.6 percent) and health (-0.2 percent from -0.1 percent). 

In contrast, prices of food and non-alcoholic beverages recorded the highest increase (+2.5 percent from +1.5 percent); followed by communication (+1.9 percent from +1.8 percent); miscellaneous goods and services (+1.1 percent from +1.2 percent); hotels, cafes and restaurants (+0.7 percent from +0.9 percent); clothing and footwear (+0.6 percent from +0.5 percent) and alcoholic beverages and tobacco (+0.4 percent from +0.5 percent). 

On a monthly basis, the CPI dropped 0.7 percent, compared to 0.5 percent growth in the previous month. Clothing and footwear and transport prices were down 12.8 percent and 0.6 percent, respectively.

The harmonized index fell 0.7 percent on the year and 1.3 percent on the month. 

Spain Deflation Eases to 0.6% in July


INE | Yekaterina Guchshina | yekaterina@tradingeconomics.com
8/12/2016 11:02:47 AM