Inflation picked up in Spain in October, although it remains below the 2% target set by the European Central Bank (ECB). The consumer price index (CPI), the index which measures the variation in the price of the basket, has progressed 1.8% over one year in Octoberaccording to advance data published this Wednesday by the National Institute of Statistics (INE). This figure is three tenths higher than that of September, which was the lowest since March 2021, and one tenth higher than that expected by the consensus of economists. Likewise, this reading assumes that inflation resumes its rise after having had four consecutive months of setbacks. In the same line, the Underlying CPI (excludes fresh foods and energy products) shows a advance of 2.5% over one yeara tenth more than what was recorded in September.
According to the INE press release, the increase in the general CPI is due “mainly to the increase in prices of fuelsand also, although to a lesser extent, to the rise in prices of electricity and of gaswhich fell in October 2023″. Details of the CPI will be known in mid-November, when the INE publishes the full distribution.
In intermonthly terms, the Consumer prices recorded a rate of 0.6% in October compared to September, compared to -0.6% the previous month. Taking into account the calculation of Harmonized CPI For the full data for the eurozone prepared by statistical agency Eurostat, the general index also reflects 1.8% year-on-year, although the monthly rate is 0.4%.
The Ministry of Economy, Trade and Enterprise highlighted the fact that inflation remains below the 2% reference level set by the ECB, at a time when growth data has once again confirmed the dynamic of the Spanish economy: Gross domestic product (GDP) grew by 0.8% in the third quarter.
“Spain continues to make the highest economic growth among developed economies consistent with inflation that has moderated considerably in recent months. This allows this excellent macroeconomic data to also be transferred to microdata, thus improving the situation and the prospects for our businesses and our families.” , underlined the Ministry of the Economy.
