MADRID – Spain’s core inflation rate is the highest since 1995. The Spanish statistics agency INE cut April inflation by a tenth to 8.3%. The food price increases are particularly striking and the largest monthly increase can be seen in oils.
In April, annual inflation was 8.3%. That is a 1.5-point drop compared to March (9.8%) and lower than market estimates, which predicted a CPI of 9% for this month. This slowdown is partly due to the moderation in energy prices (fuels and electricity) and to the measures taken by the government to contain the uncontrolled boom in the energy component.
However, inflation remains at historically high levels and is worrying for the economy. On the one hand, monthly inflation has fallen by 0.2%, a hopeful sign that the trend of monthly increases seems to be breaking. The negative note, however, was given by core inflation (excluding energy or fresh food) which stood at 4.4% year-on-year, one percentage point higher than the previous month. The INE emphasises that this is the highest underlying inflation since December 1995.
This decrease, when analysing the CPI by product groups, is produced by the housing component, whose annual variation of 18.8% is more than 14 points lower than that recorded in March, due to the decrease in electricity prices compared with the registered increase in April of the previous year.
From the INE, they find that also in this group, albeit in the opposite direction, the increase in gas prices, higher this month than in 2021, and heating oil, which fell last year, is noticeable.
In the case of Transport (12.8%), it is down almost six points compared to last month’s data, reflecting the fact that the prices of fuels and lubricants for personal vehicles have fallen this month while remaining stable in 2021.
Striking price increases in food and non-alcoholic drinks
On the side of price increases, food and non-alcoholic drinks stand out. The variation increases by more than three points to 10.1% due to general increases in most of their components. This includes the price increases of meat, bread and grains, legumes and vegetables, and milk, cheese, and eggs, higher this month than in April of the previous year.
This final data also reveals in detail which goods and services (INE calls this subdivision by a subclass) are rising in price to a greater extent.
Oil, hotels, and electricity
At first glance, it can be seen that fuels, oils, hotels, and electricity are the subclasses that have increased in price the most on an annual basis (compared to April 2021).
Monthly increases
At 5.8%, the prices of hotels, cafes, and restaurants are almost one and a half points higher than in March. This is because the prices of accommodation and restaurant services are rising more strongly this month than in 2021. Leisure and culture, which reached 2.9%, as a result of the price increase of package holidays, which fell in price level last year.
By dividing goods and services into subclasses, it can be seen that hotels, along with clothing, flights, and vegetables, have also led to the monthly price increase.
Strongest price increase in April every month
- Hotels and Hostals 19.4%
- Baby and children’s clothing 12.3%
- International flights 12.3%
- Vegetables and legumes 12%
- Olive oil 10.9%
- Women’s clothing 10.7%
- Eggs 9.9%
- Flour and grain products 9.2%
- National package holidays 7.4%
- Children’s and baby footwear 6.9%
- Poultry 6.7%
- Bakery products 6.5%
- Gas 6.5%
- Women’s shoes 6.3%
- Menswear 6.2%
- Other clothing 6.2%
- Liquid fuels 6%
- Pork 5.9%
Strongest price increase in April on an annual basis
- Other edible oils 96.2%
- Liquid fuels 95.7%
- Hotels, hostels, and guest houses 50.5%
- Olive oil 42.5%
- Electricity 34.9%
- Butane and propane gas 33.4%
- Diesel 32.1%
- Pasta and couscous 25%
- Flour and other grains 23.2%
- Eggs 21.6%
- Gas 19.4%
- Gasoline 16.3%
- Sauces 15.2%
- Bakery products 14.5%
- Whole milk 14%
- Semi-skimmed milk 13.8%
- Butter 12.8%
- Fresh vegetables 12.8%
- Crisps 12.8%
- Poultry 12.7%
Also read: Supermarkets increase prices by almost 10%
