Inflation remained stable in October due to the drop in fuel prices

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Inflation remained stable in October due to the drop in fuel prices

The Consumer Price Index (CPI) increased by 0.3% in October compared to the previous month and kept the interannual rate unchanged at 3.5%, because the increase in the price of electricity was offset by the lower price of fuels and a slightly “severe” increase in food prices compared to what was experienced last year.

With the stagnation of its interannual rate in October, inflation ended three consecutive months of increase after July, August, and September it increased four, three, and nine-tenths, respectively, according to advanced data published this Monday at the National Institute of Statistics (INE).

The interannual CPI remained at its highest level since April

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Despite everything, the interannual CPI remained at its highest level since April, when it reached 4.1%.

The Ministry of Economic Affairs and Digital Transformation highlighted that overall inflation remained stable at 3.5% in October “due to the better performance of food and the drop in fuel prices”, which offset the base effect obtained from the sharp reduction of electricity in October 2022.

underlying

«Spain has consolidated one of the main economies of the eurozone with low inflation and greater growth throughout the eurozone. The economic policy measures adopted by the Government are to favor the competition of Spanish companies, the gain in market share, and the increase in the purchasing power of salaries,” he added.

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The INE included in the CPI data preview an estimate of the underlying inflation (without unprocessed food or energy products), which in October fell six tenth, to 5.2%, a rate of 1.7 points higher than the CPI general and the lowest since May 2022, when it amounted to 4.9%.

Increase in CPI

In monthly terms (October to September), the CPI registered an increase of 0.3%, one-tenth more than the increase in the previous month.

With this rebound, inflation has chained five consecutive months of monthly increases.

In the tenth month of 2023, the Harmonized Consumer Price Index (IPCA) put its interannual rate at 3.5%, two-tenths above the rate registered in the previous month.

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For its part, the estimated monthly change in the IPCA was 0.3%.

INE will publish the final CPI data for October on November 14.