The organization explained that the moderation of the CPI to 2.2% is due to the fall in fuel prices, which increased in August 2023 and, to a lesser extentthe lower cost of food, which this month has dropped its prices more than a year ago.
With the year-on-year decline in the CPI in the eighth month of the year, inflation has now entered three consecutive months of declines following increases in March, April and May, which pushed the CPI to 3.6%.
The INE includes in the CPI data overview an estimate of core inflation (excluding unprocessed food or energy products), which in August moderated by a tenth, to 2.7%, its lowest value since January 2022 and five tenths above the general rate.
In monthly terms (August over July), the CPI showed no change compared to the previous month, unlike the 0.5% decrease recorded in July and the monthly increase of 0.5% in August 2023.
The INE will publish the final CPI data for August on September 12. “These good data show that the Government’s economic policy measures are effective, as they allow one of the highest growth rates in the eurozone to be compatible with this gradual moderation of prices and the recovery of household purchasing power,” stressed the Minister of Economy, Commerce and Business, Carlos Body.
The Minister of Economy, Commerce and Enterprise, Carlos Body, described on Thursday as “good news” the moderation of the CPI in August to 2.2%, “the lowest rate of last year”, thanks to the fall in the prices of fuel and food products. . “So we continue this process of moderation of the prices towards the European Central Bank’s 2% target“, Body stressed in an assessment of the data advanced by the National Institute of Statistics (INE) of the CPI for the month of August.
Furthermore, Body highlighted the decline in core inflation, which moderated by a tenth, from 2.8% to 2.7%. “These good data, in short, what they tell us is that the government’s economic policy measures are effective, effective because they make it possible to make compatible one of the highest growth rates in the eurozone with this gradual moderation of prices and the recovery of household purchasing power,” he stressed.
