Top Stories
Spain’s 12-month inflation slows down again in December to 5.8%
Global Banking & Finance Review®
Company
(Reuters) -Spanish consumer prices rose 5.8% in December – at their slowest annual pace this year, thanks to lower electricity prices compared to a year ago, flash data from the National Statistics Institute (INE) showed on Friday.
(Reuters) -Spanish consumer prices rose 5.8% in December – at their slowest annual pace this year, thanks to lower electricity prices compared to a year ago, flash data from the National Statistics Institute (INE) showed on Friday.
Still, core inflation, which strips out volatile fresh food and energy prices, was at 6.9% year-on-year, higher than the 6.3% recorded a month ago, the INE data showed.
In November, Spain had the lowest inflation in the 27-member European Union with a rate of 6.7%, after peaking in July at around 11%.
“We make a very positive reading. Five points in five months … Core inflation is taking longer to come down because it took longer to go up,” Economy Minister Nadia Calviño said in an interview with broadcaster SER.
Spain’s European Union-harmonised 12-month inflation was 5.6%, down from 6.7% in November and below the 6.0% expectation from analysts polled by Reuters.
Free rail travel and discounts on urban transport, limits on the increase of rents and energy bill relief measures for consumers all appear to have had an effect on price growth.
Earlier this week, Spain approved this year’s third major package of measures to ease the pain of inflation, including reductions in value-added tax on basic food staples such as bread or milk and a 200-euro bonus for households with annual incomes below the threshold of 27,000 euros.
(Reporting by Joanna Jonczyk-Gwizdala and Belén Carreño, Editing by David Latona and Andrei Khalip)
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. It is typically measured annually as a percentage increase.
Core inflation refers to the change in the costs of goods and services but excludes items that face volatile price movement, specifically food and energy. It provides a clearer view of long-term inflation trends.
The Consumer Price Index (CPI) measures the average change over time in the prices paid by consumers for a basket of goods and services. It is a key indicator of inflation.
Value-added tax (VAT) is a consumption tax placed on a product whenever value is added at each stage of production and at the point of sale. It is commonly used in many countries.
Explore more articles in the Top Stories category
