Spain Inflation Rate Confirmed at 3-Year Low of 0.1%

The annual inflation rate in Spain edged down to 0.1 percent in September of 2019 from 0.3 percent in the previous month and matching market estimates and a preliminary reading, final data showed. It was the lowest inflation rate since September 2016, mainly due to a sharp fall in prices of electricity.

Year-on-year, prices continued to fall for housing & utilities (-4.8 percent vs -3.3 percent in August), namely electricity (-17.1 percent vs -12.7 percent) while those of transport were unchanged (vs 0.2 percent). Also, cost slowed for food & non-alcoholic beverages (0.9 percent vs 1.0 percent); communications (0.4 percent vs 0.5 percent); alcoholic beverages & tobacco (0.5 percent vs 0.6 percent) and education (0.7 percent vs 1.0 percent). Meantime, inflation was steady for recreation & culture (at 0.1 percent); furnishings (at 0.7 percent) and health (at 0.9 percent). In contrast, prices rose faster for hotels, cafes & restaurants (2.0 percent vs 1.9 percent); miscellaneous goods & services (1.4 percent vs 1.3 percent) and clothing & footwear (1.0 percent vs 0.9 percent).

Annual core inflation, which excludes volatile items such as unprocessed food and energy, went up to 1.0 percent, its highest level in nearly a year, from 0.9 percent in August.

On a monthly basis, consumer prices were flat, after decreasing 0.1 percent in the previous month, in line with a flash estimate and market expectations, as declines in prices of housing (-0.5 percent vs -1.2 percent); food & non-alcoholic beverages (-0.1 percent, the same pace as in the prior month) and recreation & culture (-3.1 percent vs -1.1 percent) were offset by a rebound in those of clothing & footwear (5.4 percent vs -1.2 percent).

The EU-harmonised index increased 0.2 percent over a year earlier (vs 0.4 percent in August) and rose 0.4 percent from the previous month (vs -0.1 percent in August).

Spain Inflation Rate Confirmed at 3-Year Low of 0.1%

INE | Luisa Carvalho |
10/11/2019 9:36:13 AM