-0.7% annual inflation rate in Catalonia at the end of 2014
Catalonia ended 2014 with an annual inflation rate of -0.7%, the lowest rate since 1978, when records for the Spain’s Autonomous Communities began, according to data published on Thursday by the Spanish Statistics Institute (INE). The previous month, at the end of November, the annual consumer price index registered a rate of -0.3% in Catalonia. In the whole of Spain, the annual inflation rate at the end of December 2014 was -1%. This is the lowest rate registered since December 1961, when comparable data started to be collected. At the end of November, prices were decreasing by -0.4% in annual terms in Spain as a whole. Therefore, both in Catalonia and in Spain overall, last year ended with a significant price drop, mostly due to falling fuel prices.
Barcelona (ACN).- Catalonia ended 2014 with an annual inflation rate of -0.7%, according to data published on Thursday by the Spanish Statistics Institute (INE). This is the lowest rate recorded for the month of December since 1978, when inflation data for Autonomous Communities began to be collected. The previous month, at the end of November, the annual consumer price index registered a rate of -0.3% in Catalonia. In the whole of Spain, the annual inflation rate at the end of December 2014 was -1%. This is the lowest rate ever registered for December since 1961, when comparable data started to be collected. At the end of November, prices were decreasing by -0.4% in annual terms in Spain as a whole. Therefore, both in Catalonia and in Spain overall, last year ended with a significant price drop, mostly due to falling fuel prices. However, last December was not the month which registered the greatest price drop in Catalonia in recent years; in July 2009, prices fell by -0.9% in annual terms.
In December, a fall in transport prices (-5.8%) (due to the drop in fuel-related costs) and in communications (-5.7%) were the main reasons for the negative annual rate registered in Catalonia (-0.7%). The rest of the product groups have remained quite stable in price during the last months and those related to teaching and education have even increased, by 1.4%.
In Spain as a whole, the fall in global oil prices has also been translated into a fall in transportation prices, which dropped by -5.5% in annual terms, almost a 4 percentage point drop compared to the previous month. The price of food and non-alcoholic beverages also registered a price decrease, with a -0.3% annual rate. In November, these products had a +0.2% annual rate. In addition, housing prices also dropped in December compared to a year ago, registering a -0.2% decrease – mostly because of the drop in the price of heating fuel. At the end of November the prices for housing were stagnant, with a 0.0% rate.
Core inflation at 0.0%
Proof of the high influence of fuel prices on the overall price evolution is that core inflation was 0.0% at the end of December in annual terms for the whole of Spain. Core inflation shows the evolution of prices but excludes the most volatile ones, particularly those of food and energy products, such as fuel. In November, Spain’s annual core inflation was -0.1%.
As well as this, the Harmonised Consumption Price Index (IPCH), which is a harmonised inflation rate that allows comparison between EU Member States, showed a -1.1% annual rate at the end of December in Spain. In November, it was -0.5%. Furthermore, the IPCH’s monthly rate in December was -0.7%.
Inflation posted negative figures in monthly terms
Looking at the monthly evolution of the regular inflation rate, prices dropped by -0.4% between November and December in Catalonia. This was mostly influenced by a decrease in the price of transport (-3.6%) and in that of clothing and footwear (-0.9%).
In Spain as a whole, prices dropped by -0.6% from November to December. Once again, transport prices (-3.4%) and clothing and footwear (-2%) – due to the start of winter sales in many parts of Spain – were the main causes for this negative inflation monthly rate.