Catalonia shows a 0.1% positive annual inflation rate according to September statistics
September figures show that prices are recovering in Catalonia, with inflation posting a 0.1% rate in annual terms. According to figures released by the Spanish Institute of Statistics (INE), Catalonia is showing a positive inflation of 0.1%, up from the -0.1% recorded in August, running away from a deflation scenario. While in Spain, there is a negative annual rate of -0.2%, although it improves the August rate of -0.5%. Overall, prices showing a positive recovery rates were in the sales of fresh fruit and housing. Inflation figures are promising throughout Catalonia, although data is uneven in the provinces of Barcelona, Girona, Lleida and Tarragona showing different positive signs of price stabilizing and positive annual inflation.
Barcelona (ACN).- According to figures released by the Spanish Institute of Statistics (INE) on Tuesday, this September Catalonia is showing a positive annual inflation rate of 0.1%, up from -0.1% in August. In monthly terms, the Consumer Price Index (CPI) is down by 0.1% in Catalonia, and it is the only Autonomous Community where prices drop. However, in the whole of Spain, there is a negative annual inflation rate of -0.2% in September, although it improves the August rate of -0.5%. According to the INE September figures, the rising prices of fresh food, non-alcoholic beverages and housing, have influenced restoring positive inflation, in Catalonia the annual rate of the above is fixed at -0.1%. Additionally, increases in heating and electricity tariffs were recorded in Catalonia; their annual rates in September are fixed at 2.5%, from 1.4% the month before. Transport costs are showing negative rates on the other hand, with a rate of -1%, below the -0.3% recorded in August. Throughout Catalonia however, positive trends in inflation have been registered.
Prices stabilized across provinces throughout Catalonia
According to the September figures, the Province of Barcelona, prices fell by a rate of 0.1% compared with August, leaving a positive annual rate of inflation of 0.3%, marking years of growth as the last recorded negative rate was in September 2009. In the nearby Province of Girona (north-east of Catalonia), prices stabilized in September compared with August and left an annual rate of 0%, therefore positive inflation rates have steadily increased since October 2013. As for the Province of Lleida (in western Catalonia), September recorded price increases from August figures, setting a negative annual rate of -0.4%, marking four consecutive months of negative inflation. Lastly, in the Province of Tarragona (southern Catalonia), prices were more stable compared with those of August and left a negative annual rate of -0.4%, adding to four consecutive months of negative inflation.
Fresh food and housing costs increase, transport decreases
The positive inflation rate has been helped by rising prices of fresh food, non-alcoholic beverages and housing. In the whole of Spain, the costs of the above increased from a rate of -0.5% to -0.2%. In the case of Catalonia, this September the annual rate was fixed at -0.1%, below the 1.4% recorded in August. According to Spain’s Institute of Statistics, these rates are largely due to fresh fruit costs, which have decreased less this September than last year, and also to the increase in the prices of vegetables and grains compared to their cost stability in 2013.
As for heating and electricity tariffs, these have increased in Spain this September. In Catalonia, the annual rate of these costs was fixed at 2.5% compared to 1.4% in August.
However, while the rising costs of fresh fruit and housing helped the positive inflation rate, the opposite effect has been recorded in the transport sector. Transport costs have seen a negative variation of -1%, below the -0.3% registered in August. According to INE, this decrease is due to falling prices of fuel and lubricants, in contrary to the increase recorded in September last year. This has also influenced the falling prices in air transport, which has seen the biggest cost decreases since the same month last year.
The underlying inflation rate, which is calculated without taking into account the prices of fresh food or energy products, has been placed in Catalonia at -0.1%, above the -0.2% general inflation rate in Spain.
Monthly price behaviour
In Catalonia, the only Autonomous Community of Spain with which has recorded falling prices in September, nonetheless the areas with the biggest increases in costs are those of clothing and footwear (influenced by the beginning of the fall season) and those of housing (due to rising electricity rates).
In contrary to the above, products registering price decreases related to September, are in the sector of tourism (including services of leisure, culture, hotels, cafes and restaurants) where prices have dropped following the summer season. In addition, the transport sector has seen price decreases due to the falling costs of gasoline.