- This is how INE measures IPC: 200 executives visit the same store across Spain every month
Inflation has softened In Spain in April compared to March, when entering the CPI 8.3% growthCompared to 9.8% last month, as confirmed by the National Institute of Statistics (INE) this Friday.
This is the biggest drop recorded in a month in the last 35 years and is marked by original effect – compared to April last year when prices began to rise slightly higher (2.2%) -, due to low rise in energy prices and because of the effect of 20 cents per liter bonus of fuel, which was approved by the government and came into force on April 1 and has acted to contain the rise in gasoline and diesel. In fact, in the scenario of continued policies – without the measures – the CPI for April would have been 9.3%.
Although the softening in the general index is good news for them. purchasing power of families For more in Spain competitiveness of companies, there are two aspects that darken the reading. On the one hand, prices in Spain continue growing more than the rest of the European countries: in France he rebounded 4.8% in April; in Italy, 6.2%; in Portugal, 7.2%; and in Germany, 7.4%; and, on the other hand, underlying inflation It has registered the biggest increase since December 1995.
Thus, the index that does not take into account the development of energy products and fresh food – because they are more volatile – rose 1.8 points in April compared to March, which place Annual rate at 4.4%.
it translates More than half of goods and services what we consume (specifically 107 of the 199 items whose price INE is tracked month by month) are already above 4%. Five months ago, in December, when the general CPI rose 6.5%, only 49 of those 199 products became more expensive by more than 4%.
it is shown as The transition of prices to the entire consumer basket increases and concerns Central bank, who had earlier appealed for assurance, while assuring that the underlying rate was close to the 2% range that determines price stability. In the US, underlying inflation is already at 6.2% and the Federal Reserve has already responded with the first rate hike since 2000.
With this evolution of prices, Funkas decided to upload Average Inflation Forecast for the whole year to 7% (two tenths higher than the previous forecast), provided the central outlook for oil prices remains around $105. If crude rises to $120, the overall average rate will be 7.9%; Whereas if it falls to $90, the average IPC may remain at 6.5%. All forecasts for 2021 are well above average inflation, which stood at 3.1%.
Electricity, 35% more expensive than a year ago
in Spain, housing related expenses (water, electricity, gas, etc.) continue to grow the most, a 18.8% Yo in April; After transportation (for fuel price), and 12.8, loss Foods and non-alcoholic drinks, which are already above a 10,1%, and restaurants and hotels, which are 5.8% more expensive than a year ago.
Article by article, noteworthy is the increase in the prices of some edible oils, which are 96.2% more expensive today than they were a year ago. Olive Oilparticular, has increased by 42.5%That is, if a year ago the cost of a liter bottle was 3.60 euros, today it sells for 4.95 euros.
follow him on the rise liquid fuel used for heating, with an increase of 95.7%, and Hotels, hostels and other accommodationwhich April a. are in 50.5% more expensive than in 2021, When regional mobility had not yet recovered due to the pandemic and celebrations such as Holy Week or the April Fair continued to be cancelled.
Lightning Ruins 34.9% more expensive than a year ago, But the year-on-year growth this month is very moderate compared to last month, when prices were a . was increased 107,8%, 33.4% increase in butane and propane; Whereas Diesel up 32.1% You gasoline, 16.3%. Both capped growth of 45.6% and 33.6%, respectively, compared to March.
Within foods, other than oil, what rises the most is Pasta (25%)Flour and other cereals (23.2%), Eggs (21.6%)Sauces and Spices (15.2%), Other Bakery Products (14.5%), Whole Milk (14%)Skimmed (13.8%), butter (12.8%), fresh or chilled legumes and vegetables (12.8%), potato chips (12.8%) and poultry meat (12, 7%).
according to the norms of