Consumer Price Index (CPI) falls in August up to 2.3%, five tenths less than the previous month, according to data confirmed this Thursday by the National Institute of Statistics (INE). In addition, food inflation fell to 2.5%, the lowest rate in almost three years (since October 2021).
The statistical agency specifies that the drop in inflation in August is due in particular to falling fuel and food prices. It is worth recalling that, within the framework of the anti-crisis shield, the prices of some food products are reduced thanks to tax reductions approved by the government.
In fact, the tax reduction has increased in the case of olive oil. This product is now considered a staple food and that is why a 0% VAT is applied to it, even temporarily. And this is also noticeable in terms of inflation.
Core inflation
With the drop in the CPI in August, inflation has now entered three consecutive months of declines after the increases seen in March, April and May, which led the CPI to climb to 3.6%.
For his part, core inflation — which excludes energy and fresh produce — was also reduced, in this case by a tenth, to 2.7%.
The Ministry of Economy stressed that “the continued reduction in inflation continues to reflect the capacity of the Spanish economy to make compatible the highest economic growth among the main countries of the euro zone, as evidenced by the GDP growth data for the second quarter with a growth of the Spanish economy four times higher than the euro zone average, with a moderation of prices”.
And he added that “these factors, combined with the positive evolution of the labor market, allow to improve the purchasing power of citizens and the real income of households.”
News in update
We are working to expand this information. Soon, the editorial staff of EL ESPAÑOL will offer you an update of all the data on this news.
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