spanish inflation

According to a figures released by the Spanish Institute of Statistics (INE), Catalonia’s annual inflation rate fell from 2.6% to 2.1% between June and July. This is the second lowest annual inflation rate that Catalonia has experienced this year, with the lowest being during April when the figure was 1.8%. July’s annual inflation rate in Catalonia is higher than that of the whole of Spain, which is set at 1.8%. The main reason for this fall on last year’s results can be explained because of the lower rate of increases in electricity prices (compared to last year’s rise), as well as the end of the statistical effect of the pharmaceutical co-payment, which was implemented in July 2012 and significantly raised the consumer price of drugs.

Combined with the salary reductions and the taxation increase, the rise in inflation means that Catalans have lost purchasing power. The spending of the average Catalan family increased by some 110 euros per month compared to 2011 in order to buy the same amount of goods and services, while the net revenue decreased. In the whole of Spain, the inflation rate for the last 12 months was 2.9%, affected by the VAT increase approved by the Spanish Government. In Catalonia, it was higher due to fees adopted by the Catalan Government in order to reduce the public deficit: namely those affecting drug prescriptions and university education.

The Catalan Government’s drug prescription fee and the Spanish Executive’s decision to make citizens pay for a greater share of prescribed drugs have had an effect on inflation. The price of pharmaceutical products has had its highest increase since at least 2003.

In the three first months of the year, the inflation rate remained stable in Catalonia. The monthly price increase, which is the highest since October 2010, is mainly due to the end of retail sales and the oil price increase. In Spain, prices increased by 0.7% in March, while the annual inflation rate was set at 1.9%.

The 2011 price increase is 0.5 percentage points below the 3% inflation rate of 2010 thanks to a drop in the price of fuel and oil and the leveling off of tobacco prices. Inflation in December 2011 was 0.2 points higher compared to December 2010.

Prices have increased by 3% over the past 12 months. This represents a fall in the annual inflation rate compared to that registered in October (3.1%). In Spain as a whole, November’s annual inflation rate was set at 2.9%. The decrease in the price of medication and fuel is behind the slight annual price reduction. However, in Catalonia the monthly inflation rate increased in November by 0.4% compared to those registered in October, mainly due to an increase in the price of clothes.

Comparing the annual inflation rate registered in August, prices increased from 3.0% to 3.2%, after four consecutive months of drops. For the whole of Spain, the annual inflation in September was 3.1%.

Brussels believes it is "unlikely" to relapse into a second recession but warned that the possibility "can not be excluded". The European Commission has not lowered its growth forecast for Spain or the whole of the Euro area despite the financial turbulences of the last weeks.

The inter-annual rate shows four consecutive months of price decline which has not been seen since November 2008.

Prices increased by 7 decimals last December. The monthly price increase was of tobacco and transport.

The price increase is the result of the start of the winter season, in particular regarding clothing and shoe sales.

Prices have risen 0.3% during August compared with July, levelling the annual rate. Tourist industries such as hotels, restaurants, bars and organised trips have contributed to the rise in prices. In July, prices dropped by 0.3% in relation to June.

According to the Spanish statistics institute, annual inflation in Spain is fixed at 1.8% and prices have risen in May in the same proportion than in Catalonia, 3 decimals. The subjacent inflation in Spain has abandoned its negative sign and is set at 0.2