Annual inflation in Catalonia drops to 3% in November
Prices have increased by 3% over the past 12 months. This represents a fall in the annual inflation rate compared to that registered in October (3.1%). In Spain as a whole, November’s annual inflation rate was set at 2.9%. The decrease in the price of medication and fuel is behind the slight annual price reduction. However, in Catalonia the monthly inflation rate increased in November by 0.4% compared to those registered in October, mainly due to an increase in the price of clothes.
Madrid (ACN).- Prices in Catalonia have increased by 0.4% in November, compared to the previous month, according to data released on Wednesday by the Spanish Institute for Statistics. However, looking at the annual inflation rate, prices have slightly decreased, falling from 3.1% in October to 3% in November. The reason for this is the decrease in medication and fuel costs. In Spain as a whole, the annual inflation rate was 2.9% in November, which is almost three times more than the figure forecast by the Spanish Government in this year’s budget. Madrid aimed to have an annual inflation rate of 1% in November. The annual inflation rate registered in November is the figure used to revise certain pensions. Therefore, this significant deviation from the original forecast will oblige the Spanish Government to allocate an extra €855.87 million to compensate pensioner’s purchase power; this means €136 more per pensioner made through a single payment in early 2012. However, this extra amount might also mean that the 2011 Spanish Social Security surplus will no longer be effective.
The data from November is the continuation of a trend that began in May. Six months ago, the annual inflation rate in Catalonia was set at 3.5%. By November it had dropped to 3%. The only exception was September, when the annual inflation rate increased slightly.
The main reason for November’s annual price decrease is to be found in the 2.4% fall in the price of medication and other pharmaceutical products. This price group registered its lowest rate since the Spanish Institute for Statistics began compiling the list in 1994. Another reason for the fall is transport costs. Despite increasing by 7.2% over the last 12 months, they experienced a lower price rise to that registered in November 2010. Therefore, the annual inflation rate was affected by this difference and contributed to November’s decrease. Housing prices witnessed a similar situation.
Monthly inflation rate increased by 0.4%
The 5.4% increase in clothing and shoe prices in November, corresponded to the arrival of the winter season. When compared to October, prices in November increased by 0.4%. The rise in the cost of of fuel (0.4%) and food and non-alcoholic drinks (0.1%) are also responsible for November’s inflation rate.
Lleida is where prices increased the most
Looking at the four Catalan provinces, Lleida (western Catalonia) is the area where prices increased the most in November. It is also the only territory in Catalonia where the annual inflation rate increased compared to that registered in October, rising from 3.3% to 3.4%. In Barcelona, which is home to two thirds of Catalonia’s population, saw prices increase by 0.4%. Barcelona’s annual inflation rate was set at 2.9% in November, compared to a figure of 3.1% in October. In the province of Girona (northern Catalonia), the annual inflation rate registered in November was 3.1%. Finally, in Tarragona (southern Catalonia), the annual inflation rate was 2.9%.