The CPI Closed December 2012 at 2.9%

January 17th, 2013

The Consumer Price Index (CPI) rose one-tenth in December compared to the previous month, due to the rising price of some foodstuffs and package holidays, and maintained its annual rate at 2.9%, equalling that registered in November, the National Statistics Institute reported on Tuesday, which confirms their end of the year estimate.

The annual inflation figure for December is important for workers’ salaries, as in some cases it is used to determine the salary increase for the next year and in others it is the reference used to compensate workers for any deviation from the inflation forecast at the beginning of the year.

Throughout 2012, inflation ranged between 1.9% and 3.5%. The highest peaks were reached in September and October (3.4% and 3.5%, respectively) after the entry into force of the VAT increase and the rise in prices of other products, such as medicines. In November, the CPI fell to 2.9%, where it remained to close the year.

Meanwhile, Diario Sur reported that in December the Harmonised Consumer Price Index (HCPI) stood at 3%, the same rate as registered in November.

The statistics agency explained that the most influential groups in the variation of prices year-on-year were food and soft drinks, and leisure and culture.

Food and soft drinks increased one-tenth year-on-year, to 3%, due to increasing costs of fresh vegetables and oils.

Meanwhile, leisure and culture presented an annual rate of 0.8%, four points below that of November, because the price of package holidays increased more in December 2011 than in the same month of 2012.

According to data published by the National Statistics Institute, core inflation, which does not include the prices for energy products and unprocessed food, fell by two-tenths year-on-year in December, to 2.1%.

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