Spain September Inflation Rate Revised Down to 0.2% YoY


Spanish consumer prices increased by 0.2 percent year-on-year in September 2016, after edging lower by 0.1 percent in August, but missing preliminary estimates of a 0.3 percent rise. It was the first gain in 14 months and the biggest increase since May 2014, as cost of hotels, cafés and restaurants rose further, while prices of transport were unchanged and those of housing and utilities fell at a slower pace.

Compared with September 2015, prices of hotels, cafés and restaurants rose further by 1.1 percent, following a 0.2 percent growth the previous month. Additional upward pressure came from: food and non-alcoholic beverages (+0.8 percent from +1.8 percent in August); miscellaneous goods and services (+1.8 percent, the same as in August); and clothing and footwear (+0.8 percent from +0.7 percent).

Meanwhile, transport prices were unchanged after dropping by 1.9 percent the previous month; while cost of housing and utilities fell 2.8 percent, easing from a 4.4 decrease in August. Additional downward pressure came from: recreation and culture (-1.5 percent from +0.2 percent in August); and health (-0.2 percent from -0.1 percent).

Core inflation, which strips out volatile food and energy prices, was recorded at 0.8 percent compared to a reading of 0.9 percent a month earlier.

On a monthly basis, consumer prices were flat after rising by 0.1 percent in the previous month, as a rise in prices of clothing and footwear (+5.1 percent) was offset by falls in cost of food and non-alcoholic beverages (-0.9 percent).

The harmonized index was steady on the year but rose 0.7 percent on the month. 

Spain September Inflation Rate Revised Down to 0.2% YoY


INE | Joana Ferreira | joana.ferreira@tradingeconomics.com
10/14/2016 7:48:18 AM