The Consumer Price Index (CPI) it moderated in August to 2.2%, six tenths less than the previous month, according to data published this Thursday by the National Institute of Statistics (INE). Thus, inflation records the lowest rate of last year.
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 cuts approved by the government.
In fact, the tax reduction has increased in the case of olive oil. This product is now considered a basic food and therefore 0% VAT is applied to it, even temporarily. And this is also noticeable in terms of inflation.
Evolution of inflation
For his part, underlying inflation — which excludes energy and fresh produce — was also reduced, in this case by a tenth, to 2.7%.
In this regard, Minister Carlos Body stressed that “inflation has fallen by 6 tenths to 2%, which is the lowest rate in the last year, which is why we are continuing this process of moderating prices towards the Central Bank’s 2% target.” What is particularly contributing to this decline is the fall in fuel and food prices.
And he added that “these are ultimately good data, what they tell us is that the government’s economic policy measures are effective because they allow one of the highest growth rates in the eurozone to be made compatible with this.” gradual moderation of prices and restoration of household purchasing power”.
News in update
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