Spain Inflation Rate Confirmed at 3-Month High of 1.6%

Consumer prices in Spain increased 1.6 percent year-on-year in August of 2017, following a 1.5 percent rise in the previous month and in line with the preliminary estimate. It is the highest inflation rate in three months, mainly due to rising transport prices, namely fuel.

Year-on-year, consumer prices rose faster for: transport (3.3 percent vs 2.4 percent in July), namely fuels (7 percent vs 3.7 percent); housing and utilities (3.3 percent vs 3.2 percent); hotels, cafes and restaurants (2.3 percent vs 2.1 percent) and clothing and footwear (0.5 percent vs 0.4 percent).

On the other hand, cost was unchanged for food and non-alcoholic beverages (from 0.1 percent) while slowed for recreation and culture (0.7 percent vs 1.2 percent); miscellaneous goods and services (0.6 percent vs 1 percent) and communication (0.7 percent vs 1.5 percent). Also, prices fell less for furniture and household equipment (-0.5 percent vs -0.6 percent).

Annual core inflation, which strips out volatile food and energy prices, was 1.2 percent, lower than 1.4 percent a month earlier.

On a monthly basis, consumer prices went up 0.2 percent, compared to a 0.7 percent decrease in the preceding month.

The EU-harmonised index rose 2.0 percent year-on-year, higher than 1.7 percent in July. The monthly rate edged up 0.2 percent compared to a 1.2 percent drop in July.

 Spain Inflation Rate Confirmed at 3-Month High of 1.6%

INE | Luisa Carvalho |
9/13/2017 9:16:28 AM