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Catalonia posts 0.8% decrease in annual inflation rate, making it 4 consecutive months of decline

In February, prices in Catalonia increased by 0.2% in monthly terms but decreased by 0.8% in annual terms, according to figures released on Thursday by the Spanish Statistics Institute (INE). The inflation rate in Catalonia has been in negative territory for the last 4 months, despite the improvement in February. The monthly increase in fuel prices has been the main factor behind February's positive figures. In Spain as a whole, prices also increased, by 0.2%, over the last month but showed a 1.1% decline in annual terms. Spain's annual inflation rate has been negative for the last 8 months. Therefore, there is a serious risk of deflation, which could represent a threat by making it more difficult to pay back debt.

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12 March 2015 09:36 PM

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ACN

Barcelona (ACN).- In February, prices in Catalonia increased by 0.2% in monthly terms but decreased by 0.8% in annual terms, according to figures released on Thursday by the Spanish Statistics Institute (INE). The inflation rate in Catalonia has been in negative territory for the last 4 months, despite the improvement in February. The monthly increase in fuel prices has been the main factor behind February's positive figures. In Spain as a whole, prices also increased, by 0.2%, over the last month but showed a 1.1% decline in annual terms. Spain's annual inflation rate has been negative for the last 8 months. Therefore, there is a serious risk of deflation, which could represent a threat as, in a context of a sustained decrease in prices, debts are more difficult to pay back.


Regarding the type of products, transport prices have increased between January and February in Catalonia, due to an increase in fuel and lubricant prices, the prices of which grew by 2.4%. However, in annual terms, this type of product experienced a 5.9% drop due to the decrease of oil prices at world level. Besides this, the prices of alcoholic beverages and tobacco grew by 0.7%, standing at a +1.3% annual inflation rate.

The price of footwear and clothing registered a 2.5% fall in monthly terms, experiencing a stagnant 0.0% annual rate. Housing has also seen negative figures in February, with a 1.1% decrease in monthly terms and a 1.5% decline in annual terms, since this category of products includes heating (influenced by oil prices). Home decoration products registered a 0.1% drop in monthly terms and a 0.6% decrease in annual terms. 

At Spanish level, transport prices also were the main cause for February's overall figures. They increased by 2.2% in monthly terms but experienced a 5.6% drop compared to data from a year ago. Alcohol beverages and tobacco increased by 0.7% between January and February and registered a 1.4% growth in annual terms.

Clothing and footwear prices dropped by 1.7% at Spanish level during the last month and decreased by 0.1% during the last year. Finally, housing prices decreased by 1.3% in monthly terms and by 1.9% when compared to February 2014.

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  • Oil prices are the main reason for the price drop (by ACN)

  • Oil prices are the main reason for the price drop (by ACN)