The latest report from the National Statistics Institute (INE) highlights that the recent decrease in inflation in Spain is primarily attributed to the decline in electricity prices compared to the previous year. In September, the Consumer Price Index (CPI) dropped by six tenths, indicating an annual increase of 2.8%. Notably, the CPI, excluding energy and fresh food to mitigate drastic fluctuations, has dipped below the 3% mark that it had maintained for the past two months.
This decline in the CPI for September follows two consecutive months of decreases, contrasting with the peaks observed in March, April, and May. July saw the CPI hitting its lowest point since February, holding steady at 2.8%. Concurrently, core inflation remained unchanged in July, marking its lowest level since 2022.
A significant contributor to these price trends is olive oil, witnessing a substantial 38% decrease since June. This can be attributed to the elimination of VAT on olive oil effective from July 1. While olive oil experienced a 3.7% decrease over the past year, prices for other food items like fruit juices, chocolate, and sheep meat have notably risen.
Across the board, there have been price drops in certain food categories, including other edible oils and specific dairy products. Outside the food sector, prices have surged for shipping and security services, while costs for mobile phones and natural gas have decreased.
The Ministry of Economy has underscored these inflation figures to emphasize Spain’s economic resilience compared to its counterparts in the Eurozone. Notable efforts are being made to combat food inflation, narrowing the gap with general inflation rates.
Lastly, the Harmonised Index of Consumer Prices (IPCA) utilized by Brussels demonstrated an annual rate of 2.9% in September, showing a decrease of six tenths from June.