Highest annual inflation for Catalonia in last year: 0.3%

Barcelona (ACN) – Prices increased by three-tenths during June and left an annual inflation of 0.3%, the highest in Catalonia in the last year, particularly since June 2014, according to data published Tuesday by the Spanish Institute of Statistics (INE). This data marks the second consecutive month with positive inflation in Catalonia after six consecutive months of recording negative rates. Spain as a whole has also entered this June with positive inflation (+0.1%) after 11 months straight of deflation. June 2015 is the first month since June 2014 with positive annual inflation in both Catalonia and Spain as a whole, signifying economic recovery. Prices for electricity – which increased this June after falling last year – and the upward trend in prices of fresh fruit have decisively solidified recent inflation.

The housing basket increased in price in the whole of Spain by 1.0% over May thanks to increases in the price of electricity, which rose by 4.6% in the last month. The food and non-alcoholic beverage index increased by 0.5% since May due to monthly price increases in fresh fruit (+7.3%), potatoes (+3.4%), fresh fish (+1.7%) and oil (+1.6%).  

In addition, the general inflation was helped by positive monthly rates in baskets related to tourism such as leisure and culture (+0.4%) and the hotels, cafes and restaurants basket (+0.4%). Both the tours index and the price of hotels and other lodgings rose 4.2% to contribute to this growth.

The annual price increase was recorded despite the bearish behaviour of gas prices in Spain, whereas an increase was recorded last June. Gas prices dropped 2.1% from May to June 2015.

The rate of core inflation, which does not consider fresh food and fossil fuels, stood at 0.6% in June at the Spanish level, one percentage point higher than in May.

Barcelona Province with positive inflation for second consecutive month

In all, Catalonia experienced the second-highest annual inflation rate in Spain for June, behind the Balearic Islands (+0.4%). And for the first time in the last year none of the four provinces of Catalonia recorded negative inflation, albeit in the cases of Girona and Tarragona, the rate was 0%.

In the Province of Barcelona, where more than two thirds of Catalans live, prices rose 0.3% compared with May, leaving an inflation rate of 0.4%. This is the second straight positive number registered in the districts of Barcelona and is the highest rate since June last year, when it was at 0.5%.

In the Girona Province, where the Costa Brava is located, prices also rose 0.3% in June, leaving an annual inflation rate of 0%, the first time Girona did not register a negative rate in seven months. This 0% in June is the highest rate since October of last year, which also turned in a rate of 0%.

In the Lleida Province (western Catalonia) prices also rose 0.3%, setting annual inflation at 0.1%, the first positive after an entire year of negative inflation rates. The last time the annual inflation rate was this high was in May 2014, when Lleida also registered an annual rate of 0.1%.

Finally, in the Province of Tarragona (southern Catalonia) prices increased by 0.4% and left inflation at 0%, the first time the province avoided a negative rate since May of last year, when inflation was also at 0%.