The Spanish statistical office, INE, confirms the rebound in inflation in Spain. The consumer price index (CPI) rose to 3.4% in January. This was mainly due to the increase in electricity prices.
The INE published the final data on Thursday: inflation at the beginning of the year broke the downward trend of the last two months. And is at its highest level since October. At that time, inflation was 3.5%.
The consumer price index (CPI) in Spain started 2024 with an increase of 0.3% compared to December, reaching 3.4% year-on-year. The increase in the price of electricity, which fell a year ago, pushed up the CPI in January, while fuel prices fell. Now that the year-on-year CPI has risen at the beginning of the year, inflation is rising again.
Core inflation
Core inflation (excluding fresh food and energy) continued its downward trend. In January, core inflation fell by 0.2% to 3.6%. That’s just 0.2% above the overall index’s lowest level since March 2022. Prices of unprocessed food and energy products are not taken into account. The reason is the high volatility.
Consumer price index: up
The consumer price index rose by 0.1% in January compared to December. The year-on-year rate rose 0.3% to 3.4%. An important cause is the uptick in electricity prices.
Food and non-alcoholic beverages rose 7.4% year-on-year in January. One tenth more than in December. On a year-on-year basis, the price of olive oil has risen the most (+62.9%). Since January 2021, the price increase has already been 176.5%. Also noteworthy in January was the year-on-year price increases for maritime passenger transport (+23.7%). Prices of fruit and vegetable juices (+21.6%); Domestic package holidays (+20.1%) and subscriptions (+16.8%) also increased.
Consumer price index: decliners
On the other hand, oil (except olive oil) became cheaper in January (-25.3%). Also natural gas (-19.7%); passenger transport (-18.9%); Butane and propane (-14.4%) and liquid fuels (-13.1%) became less expensive.
Spain’s economy ministry emphasises that the increase in electricity prices in January was “compensated” by the drop in fuel prices. Food prices remained “on the path of normalisation.” Despite the fact that they remained at a “high” level.
New weighting of the consumer price index
It is the first time that INE has given the figures with the update of the new weightings of the headings of the consumer price index. In this new structure, leisure and culture, hotels and restaurants, transport and communication are the most important. Housing, household items, and food lost importance.
New weighting
It is the first time that INE has given the figures with the update of the new weightings of the headings that make up the index. In this new structure, the groups that gain the most weight are leisure and culture, hotels and restaurants, transportation and communication, and those that lose the most are housing, household items and food.
