MADRID – The Consumer Price Index (CPI) rose three-tenths from the previous month in October, suddenly falling 1.6 points year on year to 7.3%. That is the lowest inflation figure since January, just before Russia invaded Ukraine.
Then the CPI stood at 6.1%, according to final data released Tuesday by the National Institute of Statistics (INE). Therefore, the body maintains its forecast of the figure of 7.3% at the end of last month. The inflation rate for October is 3.5 points lower than the peak reached in July, when the CPI climbed to 10.8%, the highest level since September 1984.
With October’s moderation, inflation adds three consecutive months of annualised declines, after falling three-tenths to 10.5% in August, and 1.6 points to 8.9% in September.
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Decrease in electricity and gas prices
According to the INE, the moderation in the year-on-year CPI to 7.3% in October is mainly due to the decline in electricity prices and, to a lesser extent, lower gas prices. The moderation in inflation was also influenced by the fact that, as a result of the new autumn-winter season, prices of clothing and footwear rose less in October this year than in the same month of 2021.
Food prices skyrocket
At the other extreme, food prices rose again in October. This CPI rose by one point to 15.4%, the highest since the start of the series in January 1994. Noteworthy is the price increase of legumes and vegetables, meat and milk, cheese and eggs. Within foodstuffs, sugar has risen the most in price over the past year (+42.8%); followed by fresh legumes and vegetables (+25.7%); eggs (+25.5%), milk (+25%); oils and fats (+23.9%) and grains (+22.1%).
Without taking into account the reduction in the special tax on electricity and the variations in other taxes, the inter-year CPI reached 7.7% in October. That is four-tenths above the general rate of 7.3%. This is reflected in the CPI at constant taxes, which the INE also publishes.