Annual Inflation -0.2% in September

Posted by on Oct 27, 2014 in News

The Consumer Price Index (CPI) rose by 0.2% in September compared to August, and increased by three tenths year-on-year, to -0.2%, due to higher prices of electricity, food and non-alcoholic beverages, especially fresh fruits and vegetables, the National Statistics Institute reported on Tuesday, thus confirming the year-on-year data estimates published at the end of last month.

The annual inflation figure for September is the first increase to be registered in five months, as this indicator has been recording declines since May. In fact, in the accumulated year the CPI has registered a rate of -0.9%.

With the September figure, the annual CPI registered its third consecutive negative rate after those of July (-0.3%) and August (-0.5%) respectively, and is the fifth time in twelve months that prices have shown negative year-on-year rates. Nevertheless, the Government has ruled out the idea that the economy is in deflation.   August 2013 was the last month in which prices registered a more normal rate for the Spanish economy, when the CPI stood at 1.5%. Since then, partly due to the ‘base effect’ of the rise in the VAT rate in 2012, the CPI has taken a significant downturn.

Read More