Spain Inflation Rate Confirmed at 2.2% in July

The annual inflation rate in Spain fell to 2.2 percent in July of 2018 from 2.3 percent in the previous month, matching the preliminary estimate and in line with market expectations. Prices slowed mainly due to food and non-alcoholic beverages and transport.

Year-on-year, cost eased for food & non-alcoholic beverages (1.8 percent compared to 2.5 percent in June), namely fish & seafood, oil & fats and fruits; transport (5.9 percent compared to 6.1 percent), mostly due to air transportation and fuels & lubricants and health (0.1 percent compared to 0.2 percent). Also, prices of recreation & culture dropped (-0.6 percent compared to 0.6 percent). On the other hand, cost increased faster for housing & utilities (3.7 percent compared to 2.6 percent); restaurants & hotels (2.0 percent compared to 1.7 percent); clothing & footwear (1.0 percent compared to 0.9 percent); furnishings (0.3 percent compared to 0.1 percent); education (0.8 percent compared to 0.7 percent) and communications (2.7 percent compared to 2.2 percent). Additionally, inflation was steady for miscellaneous goods & services (0.9 percent).

Annual core inflation, which excludes volatile items such as food and energy, rose 0.9 percent in July, after a 1.0 percent gain in June.

On a monthly basis, consumer prices decreased 0.7 percent, in line with the preliminary figure and the same as market consensus. Negative contributions came mostly from clothing and footwear (-12.6 percent), food and non-alcoholic beverages (-0.7 percent), furnishings (-0.8 percent) and transport (-0.2 percent).

The harmonized index of consumer prices went up 2.3 percent year-on-year, unchanged from June and declined 1.2 percent from the previous month.

Spain Inflation Rate Confirmed at 2.2% in July

INE | Stefanie Moya |
8/14/2018 7:40:30 AM