Industrial prices slipped by 7.4% in November when compared with the same month a year earlier, according to the latest release from the National Statistics Institute. In October, the year-over-year decline was a more modest three-tenths of a percent, reflecting a continuing cooling in certain price pressures across the sector.
Across the wider industrial supply chain, inflation has shown a year-on-year negative trend for nine consecutive months. This marks a pause after more than two years of persistent increases, including more than 20 months with double-digit gains that extended into the early months of the year. Analysts and policymakers are watching how these dynamics influence production costs and competitiveness in the months ahead.
The November trajectory for industrial prices is influenced by several factors. Energy costs played a pivotal role, contributing to a notable spread where the energy index rose by more than four tenths to a reading of -23%. This shift partly reflects lower prices for gas production and a smaller increase in the distribution of gaseous fuels when compared with November 2022. The overall November industrial inflation remained moderate, with notable movements in non-durable consumer goods, helped by stability in the dairy product sector relative to the prior year. Dairy product manufacturing prices, while still rising, contributed less to the overall rate, which dipped by nearly one percentage point to 7.5%. Production in vegetable and animal oils and fats remained below 2022 levels, further shaping the broader price landscape.
monthly decline
Moving from year-over-year change to month-to-month dynamics, industrial prices dropped by 2% from October to November. The most pronounced monthly decline occurred in the energy sector, which fell 6.4% thanks to lower costs in oil refining and a softer regime for gas and electric power generation. This energy-driven drag pulled on the overall index and helped temper inflationary pressures across other industrial groups.
Intermediate goods also trended lower on a monthly basis, decreasing by 0.4%. This decline was driven by softer prices for basic chemical products, nitrogenous compounds, fertilizers, plastics, and the manufacture of synthetic rubber in their primary forms. In contrast, some segments exhibited resilience. Non-durable consumer goods showed the smallest monthly movement, effectively flat at zero, as price increases in the manufacturing of other food products and the processing and preservation of fruits and vegetables offset declines in other categories. The net effect was a nuanced picture of a sector adjusting to shifting input costs and demand patterns.
Increase in seven regions
On an annual basis, the Industrial Price Index reached higher levels in seven autonomous communities, eased in eight, and stayed steady in the remaining two. The most notable regional gains occurred in the Basque Country, Cantabria, and the Valencian Community, where year-over-year changes advanced by 2.4, 2.3, and 1.4 percentage points, respectively. By contrast, the Canary Islands, Andalusia, and the Balearic Islands registered the sharpest negative shifts, with declines of 1.8, 1.6, and 0.8 points, respectively.
At the end of November, all communities reported negative rates for the industrial price index. The most pronounced declines were observed in Asturias and the Balearic Islands, each down 16.5%, followed closely by the Canary Islands with a 13.6% drop. These patterns illustrate a broad regional dispersion in price movements, reflecting differences in energy intensity, industrial composition, and supply chain dynamics across the country.
Market participants and observers note that the November data align with a broader trend of moderating inflation within the industrial sector. While pockets of price resistance remain, the overall trajectory suggests that producers and policymakers are managing a transition away from the extraordinary price pressures seen in prior years. For researchers tracking price transmission, the November figures offer important clues about how energy markets, manufacturing sectors, and regional economic structures interact to shape the cost environment facing Canadian and American importers and manufacturers who rely on energy-intensive inputs. As always, ongoing monitoring of input costs, production bottlenecks, and demand signals will be essential to understanding how this price regime evolves in the coming quarters. [INE]