Saturday, September 30, 2023

Spain is the economy with the lowest inflation and highest growth in Europe

The National Institute of Statistics (INE) confirmed this Tuesday the final inflation data for August in advance of the 30th. The Consumer Price Index (IPC) closed the eighth month of the year in 2.6%, which replicates the same data expected almost 15 days ago and produced an increase of three tenths compared to July. The corresponding amount, served by Brussels, remains at 2.4% and continues Spain as the economy with the lowest inflation in the eurozone and greater economic growth.

The Spanish CPI continues around 2%, approaching the compliance with the objectives of the European Central Bank (ECB), which set the goal of reducing inflation rates by that percentage as a requirement to stop its aggressive policy of raising interest rates. In this regard, the Underlying inflation – that which does not include unprocessed food or energy – confirmed its decline by a tenth and stood at 6.1% in August, but remained almost four points above the total value.

Between July and August, the price of life shows a half point increase (0.5%), positive value for the seventh consecutive month, except for 0% in May. In the inter-monthly figure, this mainly affects the rate marked by Transportation (2.9%) and the growth of Leisure and Culture (0.9%). In the opposite direction, clothing and footwear (-0.6%) and Housing (-0.2%) showed a decrease between the two hottest summer months.

“In the month of August, inflation remained below 3% and that food is moderated”, sets the value Nadia Calvino. “Spain has consolidated itself as the European economy with the highest growth and the lowest inflation, which benefits the competitiveness of our companies and also the purchasing power of salaries,” added the first vice president and acting minister in Economic Affairs and Digital Transformation.

The coalition government celebrated the new data confirmed by the independent statistics agency. This adds to what was revealed on Monday by the European Commission, which placed Spain as the economy with the highest growth in its Gross Domestic Product (GDP) in the European Union (EU). “Our economic policy works because it allows us low inflation eight points last year in an inflationary context throughout Europe”, stressed the economic head of the Executive.

In general, the European Commission expects that Spain will close the year 2023 with a average inflation of 3.6%, four tenths lower than expected in May, a figure that will stand at 2.9% next year. The Spanish data compares to the estimate for entire EU which rose to 6.5%, a value reduced to 5.6% for the twenty that make up the euro zone. In 2024, the situation will be the same and Brussels is looking at 3.2% for the EU and 2.9% for the eurozone.

The shopping cart has slowed its growth

August is a month for all sectors, except transportation, which increased its interannual rate by six and a half points, to 1.2%, compared to July. the living place for its part, decreased by more than three points and stands at -18%, a drop that the INE indicates to lower energy prices, compared to 2022. Hotels, cafes and restaurants with a rate of 6.4%, one tenth lower than last month, also negatively influenced the CPI.

the shopping basket It also slowed its growth in the eighth month of the year. The Food and non-alcoholic beverages group decreased its value by three tenths and stood at 10.5%. This slight decrease is due to strength of milk, cheese and eggs compared to last year’s increase, the reduction in the price of fruit and a slight increase in the prices of meat and bread and cereals compared to August 2022. Therefore, although the figure remains high, the trend is downward.

Last month, the lowest CPI was recorded at bird meat, which marks 3%, followed by more than a point of bread, which stands at 4.5%. Also with values ​​lower than average, canned fruits and nuts can be seen (4.3%), the fresh fish and frozen (6.2%) and lamb and beef, with 6.6% and 6.8%, respectively. In the opposite sense, the highest evolution is suffered by oils (30.9%), pork (15.6%), potatoes and their preparations (14.3%), leche (14.1%) and legume and vegetable preparations (12.3%).

Nation World News Desk
Nation World News Desk
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