Prices increased by 0.6% in March in Catalonia and set the annual inflation rate at 2.2%

Madrid (ACN).- Prices in Catalonia increased by 0.6% in March, which set the inflation rate at 2.2%, according to data from the Spanish Institute of Statistics released on Friday. The monthly price increase, which is the highest since October 2010, is mainly due to the end of retail sales and the oil price increase. Despite the high monthly price growth, the annual inflation rate registered at the end of March is one of the lowest since August 2010, and it has remained completely stable at 2.2% over the first three months of the year. This low inflation rate is mainly due to the drop in meat and fruit prices. In Spain, prices increased by 0.7% in March, while the annual inflation rate was set at 1.9%. The difference between Spain’s average inflation rate and Catalonia’s (0.3%) is the highest since February 2010, when it reached 0.4% (although it had already reached 0.3% in October 2010).

The highest inflation increase in Catalonia was in Lleida, with a price increase of 0.8% in March. In Tarragona prices increased by 0.7% in the last month. In Barcelona and Girona they followed the average of 0.6%.

Observing the annual inflation rate, prices in Barcelona increased by 2.3% in the last 12 months, remaining unchanged over the past 3 months. The inflation rate has not been as low as the figures in March since September 2010. In Girona, prices have increased by 1.8% in the past year, below the Spanish average. It is the lowest inflation rate since February 2010. In Lleida, prices have increased by 2.5% over the last 12 months, the highest annual rate in Catalonia. Finally in Tarragona, the annual inflation rate registered in March was 2.2%, and it is the only province in Catalonia where the annual inflation rate has increased in the first quarter of 2012.

Fruit and meat moderate inflation

The products contributing the most to easing the monthly inflation rate have been food and non-alcoholic drinks, in particular fresh fruit and meat prices. They increased their price by 0.1% in March and have managed to balance the price increase in clothes and shoes –which have significantly increased their price due to the end of the sales season and the start of the new spring-summer collections– and oil prices, which have increased worldwide due to Iran’s supply shortage. Food and non alcoholic drinks have increased their price by 2.6% over the last 12 months in Catalonia, while the Spanish average represented 2.3%.

Other types of products which have contributed to moderate the annual inflation rate have been insurance premiums and house-related items, such as petrol used for heating, which this year have increased to a much lesser extent when compared with March 2011.

Clothing and shoes contributed to the increase in the inflation rate

Clothing and shoes increased their prices by 3.3% in March due to the end of the sales season and the arrival of the new spring-summer collections. They are almost responsible for half of the 0.6% price increase in March. Transport has also increased in price, mainly due to the oil price increase. Transport prices have gone up by 1.4% in March and by 5.4% over the last 12 months.

Oil price increases by 7.7% in the first quarter of 2012

In Spain, fuel prices increased by 2.8% in March, accumulating a 7.7% growth over the first 3 months of the year and an annual inflation of 9.9%, the highest out of all the group of prices forming the inflation index.

Prices related to leisure and culture increased by 0.7% in March, leaving an annual rate of 1.2%. One year ago, the annual inflation rate was -1.3%. Within this group of prices, the exception is organised trips, which have increased their price due to the Easter holidays.