The consumer price index (CPI) broke four months of moderation in October by increasing 1.8% year-on-year, three tenths more than in September, when it reached its lowest level since March 2021. Likewise, this figure implies that inflation will resume its rise after having had four consecutive months of declines. Core inflation (the index excluding fresh food and energy products) also rose more than the previous month to stand a tenth higher, at 2.5%.
The increase in the general CPI, a tenth above that expected by the consensus of economists, was “mainly due to the increase in fuel prices and the rise in the prices of electricity and gas, par Compared to the decline they experienced in October 2023, as indicated by the INE in its note published this Thursday, inflation however remains below the 2% target set by the European Central Bank (ECB).
It should be remembered that in addition, in October, VAT on reduced basic products increased to 7.5% and on super reduced products – which includes olive oil since July – up to 2% (5% the first and 0% the second), levels at which they will remain until January, when they will return to their usual rates of 10% and 4%).
The monthly increase was more relevant. From September to October, the CPI rose 0.6% from the previous month, its largest monthly increase since April, when it rose 0.7%. In this case, the price increase is explained by the 8.5% increase in the cost of the clothing and footwear group due to the change of wardrobe for fall-winter as well as the increase in the price of food products by 1.4% by the increase. in the price of fruits, legumes and vegetables.
