The Catalan Government’s drug prescription fee and the Spanish Executive’s decision to make citizens pay for a greater share of prescribed drugs have had an effect on inflation. The price of pharmaceutical products has had its highest increase since at least 2003.
In the three first months of the year, the inflation rate remained stable in Catalonia. 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. In Spain, prices increased by 0.7% in March, while the annual inflation rate was set at 1.9%.
The 2011 price increase is 0.5 percentage points below the 3% inflation rate of 2010 thanks to a drop in the price of fuel and oil and the leveling off of tobacco prices. Inflation in December 2011 was 0.2 points higher compared to December 2010.
Prices have increased by 3% over the past 12 months. This represents a fall in the annual inflation rate compared to that registered in October (3.1%). In Spain as a whole, November’s annual inflation rate was set at 2.9%. The decrease in the price of medication and fuel is behind the slight annual price reduction. However, in Catalonia the monthly inflation rate increased in November by 0.4% compared to those registered in October, mainly due to an increase in the price of clothes.
Comparing the annual inflation rate registered in August, prices increased from 3.0% to 3.2%, after four consecutive months of drops. For the whole of Spain, the annual inflation in September was 3.1%.
Brussels believes it is "unlikely" to relapse into a second recession but warned that the possibility "can not be excluded". The European Commission has not lowered its growth forecast for Spain or the whole of the Euro area despite the financial turbulences of the last weeks.
The inter-annual rate shows four consecutive months of price decline which has not been seen since November 2008.
During July, inflation rates experienced their third consecutive month of decline. In the last 12 months, the cumulative price increase now stands at 3.2% in Catalonia. The drop of summer sales has helped to lower inflation.
Prices increased by 7 decimals last December. The monthly price increase was of tobacco and transport.
The price increase is the result of the start of the winter season, in particular regarding clothing and shoe sales.
Catalonia saw its prices rise by 8 decimals in October, contributing to an annual inflation rate of 2.6%. Prices for apparel and footwear rose by 10.4 points in Catalonia, playing a heavy role in the overall increase of prices.
These levels have not been recorded since November 2008. However price raises stabilised in relation to August, particularly because of the price decrease of organised trips.
Prices have risen 0.3% during August compared with July, levelling the annual rate. Tourist industries such as hotels, restaurants, bars and organised trips have contributed to the rise in prices. In July, prices dropped by 0.3% in relation to June.
The country registers its highest inflation since 2008 and the highest monthly-rise of prices in all Spain, according to the data published by the Institute of Statistics
According to the Spanish statistics institute, annual inflation in Spain is fixed at 1.8% and prices have risen in May in the same proportion than in Catalonia, 3 decimals. The subjacent inflation in Spain has abandoned its negative sign and is set at 0.2