deflation

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 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.

In Catalonia, prices rose in March by 0.7% compared to February, due to price increases registered in clothing and fuel, according to the Spanish Institute of Statistics (INE). However, the annual inflation rate remained negative for the 5^th consecutive month, standing at -0.3%. Despite this bad news, March's annual inflation rate was higher than February's -0.8%. The Catalan trend reflects partly that registered in Spain as a whole, where prices rose in March by 0.6%. However, the annual inflation rate remained negative, standing at -0.7%. For Madrid, it represents the 9^th consecutive month of negative inflation, although the situation in March is better than February's -1.1% annual rate.  

In February, prices in Catalonia increased by 0.2% in monthly terms but decreased by 0.8% in annual terms, according to figures released on Thursday by the Spanish Statistics Institute (INE). The inflation rate in Catalonia has been in negative territory for the last 4 months, despite the improvement in February. The monthly increase in fuel prices has been the main factor behind February's positive figures. In Spain as a whole, prices also increased, by 0.2%, over the last month but showed a 1.1% decline in annual terms. Spain's annual inflation rate has been negative for the last 8 months. Therefore, there is a serious risk of deflation, which could represent a threat by making it more difficult to pay back debt.

Catalonia ended 2014 with an annual inflation rate of -0.7%, the lowest rate since 1978, when records for the Spain’s Autonomous Communities began, according to data published on Thursday by the Spanish Statistics Institute (INE). The previous month, at the end of November, the annual consumer price index registered a rate of -0.3% in Catalonia. In the whole of Spain, the annual inflation rate at the end of December 2014 was -1%. This is the lowest rate registered since December 1961, when comparable data started to be collected. At the end of November, prices were decreasing by -0.4% in annual terms in Spain as a whole. Therefore, both in Catalonia and in Spain overall, last year ended with a significant price drop, mostly due to falling fuel prices.

September figures show that prices are recovering in Catalonia, with inflation posting a 0.1% rate in annual terms. According to figures released by the Spanish Institute of Statistics (INE), Catalonia is showing a positive inflation of 0.1%, up from the -0.1% recorded in August, running away from a deflation scenario. While in Spain, there is a negative annual rate of -0.2%, although it improves the August rate of -0.5%. Overall, prices showing a positive recovery rates were in the sales of fresh fruit and housing. Inflation figures are promising throughout Catalonia, although data is uneven in the provinces of Barcelona, Girona, Lleida and Tarragona showing different positive signs of price stabilizing and positive annual inflation.