For the second month in a row, inflation It recovered in August and It was 2.6%, three-tenths of the 2.3% recorded in July. It is seven-tenths above the 1.9% level reached in June, the lowest rate since April 2021. Consumer Price Index (CPI) expected on Wednesday National Institute of Statistics (INE) and said it won’t be final until September 12.
CPI increased compared to July 0.5% per monthThree-tenths above what it was in August 2022, so the annual inflation rate rose from 2.3% in July to the current 2.6%.
In August last year, monthly decreases were recorded in gasoline and diesel prices. However, the reverse movement of prices this year contributed to the increase in the general inflation rate up to 2.6%.
The development of electricity prices, which reached a six-month high in August, did not help either; however, the increase according to INE did not reach the levels in the same month last year. It became 0.4% more expensive than the monthly rate, bringing the annual rate to 49.4%.
Currently, the INE does not foresee any clues as to how food inflation developed in August. The evolution of prices for different goods and services will be published in detail on September 12. For now, INE has announced the call. Core inflation (Excluding the more volatile prices of energy and unprocessed food) came in at 6.1%, down one-tenth from July.
According to the latest Bank projection from Spain, the labor services and the Government’s projections for the coming months indicate that the slight increase in inflation will continue around 3.2% on average until the end of the year.
In any case, the Government appreciates the consolidation of Spain. One of the countries with the lowest inflation in the EurozoneAfter dropping about 8 points last year. Actually, INE predicts: Harmonized Consumer Price Index (IPCA) remained at 2.4% (below the overall rate of 2.6%). From an economic perspective, this contributes to the competitiveness of Spanish companies, gaining market share and increasing the purchasing power of wages.