The Consumer Price Index (CPI) rose 0.6% in December compared to the previous month and raised its interannual rate by nine tenths, to 1.6%, the fourth consecutive positive rate and its highest level since June 2013 ( 1.8%), according to the final data published this Friday by the National Institute of Statistics (INE).
The definitive CPI rate for December, thus confirming the rise in prices in the last month of the year, as a result of the increase in the price of gasoline, electricity, diesel for heating, gas, organized trips and of some foods, such as legumes and vegetables.
Thus, the year-on-year CPI ended 2016 above the salary increase agreed in the agreement (1.06%) and the increase experienced by pensions (0.25%), with the consequent losses in purchasing power.
The year-on-year CPI started last year at negative rates, marking a rate of -0.3% in January. For eight months it registered negative rates until in September it returned to positive territory, with a rate of 0.2%. In the last quarter of last year, the CPI grew 1.4 points, returning at the end of 2016 to 2013 levels, more in line with the usual evolution of prices in the Spanish economy.
In December, the Harmonized Consumer Price Index (IPCA) raised its interannual rate by nine tenths, up to 1.4%, while the monthly variation stood at 0.5%.
In monthly terms, the CPI rose 0.6% in December from the previous month, its biggest rise this month since December 2010, when it also rose 0.6%.
Core inflation, which does not include the prices of energy products or unprocessed food, rose two tenths in December, up to 1%, six tenths below the general CPI rate.
The price of gasoline rises
The strong rise in the CPI year-on-year in December is due to several factors, including the rise in gasoline and electricity prices. Specifically, the transport group raised its interannual rate by more than three points in December, up to 4.7%, due to higher fuel prices.
The housing group increased its interannual rate by more than one point, up to 0.8%, due to the rise in electricity prices, greater than that registered in 2015, and, to a lesser extent, due to that of diesel prices for heating and gas.
Likewise, the leisure and culture group increased its interannual variation by more than two points, up to 0.5%, due to the increase in the cost of organized trips, while the interannual rate of food and non-alcoholic beverages grew four tenths, up to 0.8%, due to the higher cost of fresh vegetables and the lower decrease in the prices of fresh fruit compared to that experienced in December 2015.
In monthly terms (December 2016 compared to November of the same year), the CPI rose 0.6%, its highest rise in this month since December 2010. This monthly increase in prices, which could not be offset by the effect of sales in clothing and footwear, it is due to the increase in fuel prices, organized trips, electricity and some food, among other factors.
Facebook Comments
Disqus