Rewrite for Clarity and Context on April Inflation Trends in Spain and Related Sectors

These figures reflect data developed by the agency at the end of last month and point to an annual inflation rate of 8.4 percent with a monthly change of minus 0.1 percent in April. Source: Statistics Agency.

Even as CPI stays at notably high levels, this indicator has not fallen by this much in a single month in more than three and a half decades, with the last comparable drop dating back to January 1987. For April, it marks the first decrease in inflation after two consecutive months of gains that kept the CPI flat, with 9.8 percent in March representing the highest rate in nearly 37 years. Source: National Economic Report.

Analysts credit the annual CPI decline to lower electricity and fuel costs for personal vehicles. Source: Economic Statistics Update.

Within the transport sector, the year over year rate fell by nearly six percentage points to 12.8 percent due to reductions in fuel and lubricant costs for personal vehicles. However, prices for automobile and passenger air travel rose within this group. Source: Transport Sector Review.

Meanwhile, the housing group saw its annual rate drop by more than 14 points to 18.8 percent in April, driven by lower electricity prices. On the upside, prices for gas and heating fuels increased. Source: Housing Sector Analysis.

Electricity costs rose by 34.9 percent over the past year, even with tax relief. In March 2022, the year over year increase in electricity bills was 107.8 percent. When these tax cuts are phased out, the annual rise in electricity prices in April would be 54.4 percent. Source: Energy Pricing Report.

Excluding the special electricity tax relief and other tax changes, the annual CPI stood at 9.3 percent, one point higher than the general rate of 8.3 percent in April. This figure appears in the CPI updates published by the statistical agency as part of its ongoing statistics program. Source: National Statistics Bureau.

Against a backdrop of moderating housing and transportation costs, food prices continued to climb. Meat, bread and grains, legumes and vegetables, and dairy products including milk, cheese, and eggs posted an annual rise of 10.1 percent in April, up more than three percentage points from March as ingredients across most categories increased. Source: Food Price Monitor.

The hotels, cafes and restaurants category also saw its annual rate rise to 5.8 percent, an increase of about 1.5 percentage points from March, driven by higher accommodation and dining costs. A separate uptick of about two points was observed in tourist packages under entertainment and culture, which contributed to the overall rise in the sector. Source: Services Sector Review.

up to 4.4% basic

Core inflation, which excludes unprocessed food and energy products, rose by one percentage point in April to 4.4 percent, its highest level since December 1995. This keeps core inflation roughly four percentage points below the overall CPI. Source: Core Inflation Report.

On a monthly basis, the CPI fell 0.2 percent in April compared with March, marking the first decline after two months of gains. This is also the first negative April monthly inflation in thirty years, with the last such occurrence in 1992. Source: Monthly Price Bulletin.

In the fourth month of 2022, the Harmonized Consumer Price Index IPCA showed an annual rate of 8.3 percent, about half a percentage point below March. The IPCA’s month over month advance also eased by 0.3 percent. Source: IPCA Update.

Electricity is almost 27% cheaper

At the monthly level, the IPC recorded a month-on-month decrease of 0.2 percent in April, its first drop after two months of increases. This marks the first negative April for three decades, with the last similar occurrence in 1992. Source: Price Trend Monitor.

The month’s price decline also reflects lower housing and transportation group costs compared with higher activity in food, clothing, hotels, restaurants, and entertainment and cultural services. Source: Sector Price Dynamics.

The price of electricity rallied by 8.4 percent this Friday, surpassing 200 euros in some markets. Source: Energy Market Review.

April saw the sharpest monthly increases in oils other than petroleum products at 39.8 percent and hotels, hostels and guesthouses at 19.4 percent, while electricity fell by 26.9 percent and gasoline by 12.5 percent, and diesel by 9.6 percent. Source: Commodity Price Matrix.

Olive oil price skyrocketed

Comparing April 2022 to the same month in the prior year shows other oils up 96.2 percent, liquid fuels up 95.7 percent, hotels and hostels up 50.5 percent, olive oil up 42.5 percent, and electricity up 34.9 percent. Source: Yearly Commodities Review.

Conversely, items that have become cheaper since April 2021 include toll booths and parking spaces down 20.4 percent, mobile phone equipment down 3.8 percent, audiovisual equipment down 2.7 percent, children’s and baby clothing down 2 percent, and games and hobbies down 1.5 percent. Source: Consumer Goods Prices.

Early-year price pressures show increases in heating, lighting and water distribution at 35.2 percent; oils and fats at 48.4 percent; eggs at 21.6 percent; cereals and derivatives at 13.7 percent; and personal transport at 13.2 percent. Source: Food and Utilities Outlook.

Rising prices for legumes and vegetables at 12.8 percent, poultry at 12.7 percent, beef at 11.4 percent, mutton at 10.7 percent, coffee, cocoa and infusions at 10.2 percent, and bread at 10.1 percent illustrate broad-based food inflation. Source: Agricultural Prices Tracker.

Communities

In April the annual CPI rate fell across all autonomous communities. The steepest declines occurred in Comunidad Valenciana, Murcia and La Rioja, while Navarra showed the smallest drop at 1.1 percentage points. Source: Regional Inflation Report.

By the end of April all communities posted positive annual rates, with Castilla-La Mancha recording the highest increase at 10.4 percent. The lowest inflation rates appeared in Canarias at 7.1 percent and Madrid at 7.7 percent. Source: Regional Price Analysis.

In April six Spanish provinces posted annual CPIs above 10 percent: Toledo at 11.5 percent, León at 11 percent, Ávila at 10.9 percent, and Ciudad Real, Huesca and Cuenca each at 10.3 percent. Source: Provincial Inflation Dashboard.