A recent release from the National Institute of Statistics (INE) shows a meaningful shift in price dynamics across the economy. Inflation declined from 10.5 percent in the prior month to 8.9 percent in September. This marks a substantial slowdown from the earlier peak and suggests that the measures already put in place are beginning to bite. In a broader view, the INE notes a month-on-month drop in the consumer price index (CPI) by seven-tenths of a percentage point, signaling a broad easing in price pressures as September concluded. Electricity prices fell by 17 percent versus August, while fuel prices rose slightly by 1.7 percent, contributing to a mixed but generally softer monthly inflation profile. These shifts help frame the overall cost of living for households in North America and beyond, with nuances that matter for budgeting and financial planning in both the United States and Canada. [Source: INE]
From the perspective of the Ministry of Economy, the fall in inflation underscores the effect of targeted government actions designed to temper price increases, particularly in transportation. Notably, subsidized commuter travel programs — including reduced fares for trains, buses, and city metro systems — appear to have produced a sizable impact, with personal transport prices showing a 38.2 percent decrease in the September data. This drop was a decisive factor in moderating the monthly inflation figures and demonstrates how policy measures can translate into real savings for consumers who rely on daily transit. The government’s approach illustrates a broader strategy to shield households from sudden spikes in transport costs while supporting mobility and productivity. [Source: INE]
On the food front, prices did rise modestly month over month, climbing 0.5 percent in September. This uptick pushed the annual rate for food items to 14.4 percent, up from 13.8 percent in August, illustrating how food components can sustain inflation pressure even as other categories cool. For families, that means food shopping remains a meaningful line item in monthly budgets, particularly as supply chains and input costs fluctuate across regions. Analysts highlight that this inertia in food prices contributes to the overall inflation narrative and informs expectations for holiday-season pricing in North America. [Source: INE]
After a peak inflation rate of 10.8 percent in July, which stood as a 38-year high, authorities have noted a successive moderation in August and September. Projections suggest that September’s rate of 8.9 percent will likely persist at reduced levels in the near term, though policymakers caution that some volatility could reappear due to external factors such as energy markets and global supply chains. In parallel, the core inflation metric — which excludes the most volatile components of unprocessed food and energy products — declined by two-tenths to 6.2 percent. This aligns with prior INE forecasts published on September 29 and provides a gauge of underlying price pressures that are less influenced by food and energy swings. [Source: INE]
Across the broader European context, the Harmonized Index of Consumer Prices (HICP) is reported at around 9 percent, reflecting a three-tenths decrease from earlier progress and continuing to sit below the euro area average. The divergence among national measures underscores how local policies, energy markets, and consumer behavior shape the inflation landscape in each country, including Canada and the United States. As markets digest these developments, households and businesses in North America will be watching closely for any signals that price stability is taking root and that monetary policy responses remain calibrated to evolving conditions. [Source: INE]