Prices dropped by 1.7% in January, leaving annual inflation flat
The negative inflation rate in January has been accentuated by a drop in housing prices (-4.8%) mainly due to the decrease in electricity prices, according to figures released by the Spanish Statistics Institute. The January sales have also affected the so-called Consumer Price Index (IPC). On the other hand, the price of transportation grew from -2.7% in December to -1.7% this past January, due to the increase in fuel prices. Thus, the annual variation in Catalonia leaves annual inflation for last month flat. In the whole of Spain, the drop was even more accentuated; prices decreased by 0.3% last month in comparison to January 2015.