Prices dropped by 1.7% in January, leaving annual inflation flat
The negative inflation rate in January has been accentuated by a drop in housing prices (-4.8%) mainly due to the decrease in electricity prices, according to figures released by the Spanish Statistics Institute. The January sales have also affected the so-called Consumer Price Index (IPC). On the other hand, the price of transportation grew from -2.7% in December to -1.7% this past January, due to the increase in fuel prices. Thus, the annual variation in Catalonia leaves annual inflation for last month flat. In the whole of Spain, the drop was even more accentuated; prices decreased by 0.3% last month in comparison to January 2015.
Barcelona (CNA).- The variation of prices in Catalonia throughout 2015 left inflation flat. Thus, the annual inflation rate in January 2016 was 0%. This is due to the 1.7% decrease registered in January in the so-called Consumer Price Index (IPC), after three consecutive months of either a positive or a flat inflation rate. According to figures released by the Spanish Statistics Institute, last month’s drop has been accentuated by the January sales and a drop in housing prices (-4.8%) mainly due to the decrease in electricity prices. On the other hand, the price of transportation grew from -2.7% in December to -1.7% this January, due to the increase in fuel prices. In the whole of Spain, the drop has been even greater; prices decreased by 0.3% last month in comparison to January 2015.
This January prices dropped in all the Catalan regions; Barcelona, Girona, Tarragona and Lleida. The 1.7% decrease in comparison to December 2015 is mainly due to the January sales, which started right after Christmas and are still ongoing, and a drop in housing prices (-4.8%) mainly due to the decrease in electricity prices.
On the other hand, the price of transportation grew from -2.7% in December to -1.7% in January, due to the increase in fuel prices.
In the same vein, the shopping basket was more expensive this January than it was in the same month last year. The price of food and non-alcoholic beverages has increased more than 2%, especially that of fresh products such as fish.
Hotel, restaurant and cafe prices have also grown in comparison to January 2015.
Negative annual figures in Spain
The negative trend is more accentuated in the whole of Spain. Thus, the IPC rate registered this January was 2% lower than that registered in December. In annual terms, prices in Spain were 0.3% lower this January than in the same month last year.