Prices rise 0.8% in October and annual inflation is up 1.9% in one year
Inflation drops two tenths of a percent compared to the previous month as the cost of gasoline increases less than last year
Prices rose eight tenths of a percent in October compared with the previous month. Thus, annual inflation stands at 1.9%, two tenths less than the 2.1% consumer price index (CPI) rate registered in September, according to the Spanish Statistics Institute.
The cost of gasoline rises less
The fall in annual inflation is due to the fact that the cost of gasoline rose less in October 2017 than in October 2016. In addition, clothing and footwear stores increased prices more moderately than a year ago.
In contrast, the price of fresh food, especially of seasonal fruit, kept the annual inflation rate relatively high. The price of these products rose in October this year, while they had remained stable in October last year.
Annual inflation rate drops two tenths of a percent
The annual inflation rate dropped two tenths of a percent in relation to the inflation rate registered in September due to moderate transportation costs, including gasoline and air transport fuel, clothing and footwear, housing, gas and electricity, and the cost of leisure and cultural activities.
Nevertheless, fresh food, non-alcoholic beverages and tobacco pushed the annual inflation up in October. The price of fresh fruit rose in October this year, while it remained stable in October last year.
The cost of gasoline has a big impact on inflation
The main downward impact of the inflation rate was the cost of transport, especially that of transportation, as the cost of gasoline rose less than last year. Moderate increases in the cost of airline tickets and automobiles also affected the inflation rate.
Prices at clothing and footwear stores rose less than last year
Prices at clothing and footwear stores also rose this October less than they did in October last year. Moderately increasing housing costs also limited the increase in inflation, since gas bills dropped this October, in contrast with last year. Electricity bills increased this year, but less than in October last year. Finally, leisure and culture also had an impact on inflation, as the price of packaged tours fell more this year than in October last year.
Underlying rate of inflation stands at 0.9%
The underlying rate of inflation, which doesn't take fresh foods or petroleum products into account, stands at 0.9% in October, 0.3 less than in September.
Spanish annual inflation stands at 1.6%
In the whole of Spain, prices increased 0.9% and the annual inflation stands at 1.6%, two tenths below that recorded in the month of September.