Prices in Catalonia rose by 2.5% in 2011

Madrid (ACN).- Prices rose 0.2 points during the month of December in Catalonia and 2011 ended with an annual inflation rate of 2.5%, according to figures from Spain’s National Statistics Institute (INE). The figure is 0.5 points lower than the annual inflation rate (3%) in 2010. The prices of two products have contributed to the lowering of the annual inflation rate measured by the Consumption Price Index (CPI), an index that sets wage increases in many collective labour agreements. The drop in fuel and oil prices in annual terms has had a positive effect on transport costs. The other contributing factor has been the stability in tobacco prices. In Spain as a whole, prices rose 0.1 points in December and 2011’s annual inflation rate was set at 2.4%.

Entertainment and leisure have increased in price in Spain with an inter-annual inflation of 1.3%, 0.9 points above last month’s registered figure. The INE explained the variation by the rise in prices of package tours and recreational and sport services during the last month of 2011.

The core inflation rate, the index that measures the price variation of an average shopping trolley excluding fresh food and energy, considered the most volatile prices, reached an inter-annual rate of 1.5%. The indicator reduced the difference with the general price index by 0.9 points.

With these CPI figures, the Spanish economy registered a price increase of 0.4 points below the European Union average (2.8%). It is especially significant information because in February Spain’s inflation rate rose above the price index of the entire European Monetary Union.

Five consecutive months of inflation

In Catalonia, prices rose 0.2% in December when compared to the previous month. In Spain, the CPI’s monthly variation rate was 0.1% when compared to November. This last figure represents five months of growth in prices, although the tendency slowed its pace since October’s 0.8% rise. Entertainment and leisure activities experienced a positive monthly repercussion, with a 2.2%monthly rate that can be explained by the increase in package tour prices, very common at the end of the year. Its translation into general CPI terms was of 0.164 points.

Food and beverages had a monthly rate increase of 0.3% or -0.057 points if translated to general index numbers- mainly due to the increase in the prices of fish, meat and milk. On the other hand, footwear and clothing suffered a price drop during December, with a -1.4% fall that reflects the effect prior to the sales. Transportation also experienced a 0.2% decrease caused by a fall in fuel prices.