Catalonia’s annual inflation 0.4% in July; highest in past 12 months
Catalonia’s annual inflation rate increased from a rate of 0.3% in June to 0.4% in July, according to information released on Thursday by the Spanish Statistics Institute (INE). This is the highest yearly rate since June 2014, when prices also increased 0.4% compared to the previous year. In Spain as a whole, annual inflation continued at the 0.1% rate registered in June. Therefore, deflation is gradually being left behind, although price increases are still at a low level, mostly due to the continuing low price of fuel on the global market. However, in monthly terms, prices declined by 0.8% in Catalonia, mainly owing to a 13.3% drop in the price of retail goods due to seasonal sales, but also because of a 0.5% drop in the price of fruits and vegetables. The increase in housing rentals, communications and entertainment, mostly travel industry, have not been able to compensate for the aforementioned declining prices in monthly terms.
Barcelona (ACN).- Catalonia’s annual inflation rate increased from a rate of 0.3% in June to 0.4% in July, according to information released on Thursday by the Spanish Statistics Institute (INE). This is the highest yearly rate since June 2014, when prices also increased 0.4% compared to the previous year. In Spain as a whole, annual inflation continued at the 0.1% rate registered in June. Therefore, deflation is gradually being left behind, although price increases are still at a low level, mostly due to the continuing low price of fuel on the global market. However, in monthly terms, prices declined by 0.8% in Catalonia, mainly owing to a 13.3% drop in the price of clothing and footwear due to seasonal sales, but also because of a 0.5% drop in the price of fruits and vegetables. The price increase in housing rentals, communications and entertainment, mostly travel industry, during the month of July have not been able to balance out the overall monthly inflation.
Housing prices increased by 0.1% in annual terms in July, while in June they fell by 0.5%. Besides housing rentals, electricity prices have also contributed to this increase. Communication prices continued to decline in annual terms in July, falling by 0.6% in yearly terms, but were in better shape than the almost 2% annual drop registered in June. Finally, leisure and entertainment prices went from a 1% year-on-year decline in June to a less extreme 0.3% decline in July. Despite still being negative in overall terms, the travel industry has pushed the sector forward, increasing its prices from July 2014.
The products that have contributed the most to keeping the overall inflation rate at a low level have been those from the transport and agri-food industries. Transportation continues to register significant decreases, plummeting from a -2.8% annual rate in June to -3.5% in July (due to the drop in fuel prices worldwide). Finally, the price of food and non-alcoholic beverages declined from a 2.3% annual rate in June to 1.8% in July, mostly due to the fall in price of fresh fruits and vegetables.