Spain August Inflation Rate Confirmed at Nearly 3-Year Low

The annual inflation rate in Spain fell to 0.3 percent in August 2019 from 0.5 percent in the previous month and in line with market expectations and a preliminary reading, final data showed. It was the lowest inflation rate since September 2016, amid a slowdown in cost of transport and a further fall in housing prices, namely electricity .

Year-on-year, prices eased for transport (0.2 percent from 0.5 percent in July); and restaurants & hotels (1.9 percent from 2.0 percent). Also, cost of housing & utilities dropped 3.3 percent, after declining 1.7 percent in July, in particular electricity (-3.7 percent). On the other hand, prices of food & non-alcoholic beverage advanced further (1 percent from 0.9 percent) and cost of recreation & culture rebounded (0.1 percent from -0.3 percent). Additionally, inflation was steady for clothing & footwear (at 0.9 percent); and miscellaneous goods & services (at 1.3 percent); education (at 1 percent). 

Annual core inflation, which excludes volatile items such as unprocessed food and energy, stood at 0.9 percent.

On a monthly basis, consumer prices went down 0.1 percent, following a 0.6 percent fall in the previous month, in line with a flash estimate and market forecasts, mostly due to housing (-1 percent), clothing & footwear (-1.2 percent), recreation & culture (-1.1 percent) and food & non-alcoholic beverages (-0.1 percent).

The EU-harmonised index increased 0.4 percent over a year earlier (vs 0.6 percent in July), but declined 0.1 percent from the previous month (vs -1.1 percent in July).

Spain August Inflation Rate Confirmed at Nearly 3-Year Low

INE | Stefanie Moya |
9/13/2019 7:43:38 AM