Spain Inflation Rate Confirmed at Near 3-Year Low of 0.4%


The annual inflation rate in Spain fell to 0.4 percent in June of 2019 from 0.8 percent in the previous month and in line with flash estimates. It was the lowest inflation rate since September of 2016, mainly due to a flat reading in transport cost.

Year-on-year, cost slowed for health (0.7 percent from 0.8 percent in May); communication 0.1 percent from 0.2 percent) and alcoholic beverages and tobacco (0.4 percent from 0.6 percent). In addition, transport prices showed no growth in June, after a 1.8 percent gain in the prior month. Also, inflation was steady for food and non-alcoholic beverages (at 0.5 percent); housing and utilities (at 0.6 percent); restaurant and hotels (at 2.2 percent); clothing and footwear (at 0.9 percent); furniture and household equipment (at 0.6 percent) and education (at 1 percent). 

Meantime, prices went up faster for miscellaneous goods and services (1.5 percent from 1.3 percent) and cost continued to decrease for recreation and culture (-0.4 percent from -1.2 percent).

Annual core inflation, which excludes volatile items such as food and energy, accelerated to 0.9 percent in June from 0.9 percent in May.

On a monthly basis, consumer prices went down 0.1 percent, after a 0.2 percent increase in the previous month and also matching flash estimates. Prices fell for slowed mainly for transport (-1.4 percent from 0.5 percent in May); alcoholic beverages and tobacco (-0.1 percent from 0.1 percent); clothing and footwear (-1.3 percent from 2.4 percent) and communication (-0.2 percent from 0.1 percent).  

The harmonized index of consumer prices advanced 0.6 percent year-on-year (from 0.9 percent in May), and decreased 0.1 percent month-over-month (from 0.2 percent in May).

Spain Inflation Rate Confirmed at Near 3-Year Low of 0.4%


INE | Agna Gabriel | agna.gabriel@tradingeconomics.com
7/12/2019 9:27:05 AM