Inflation Dropped to 1.4% in April

May 16th, 2013

According to the latest report from the National Statistics Institute published on Tuesday, the Consumer Price Index (CPI) rose by 0.4% in April compared to March, but dropped by one percentage point year-on-year, to 1.4%, thanks to cheaper fuel and electricity.

The annual rate of 1.4% reached in April is the lowest since March 2010, when inflation also stood at 1.4%. From the beginning of this year, the annual inflation rate has fallen 1.3 points, from 2.7% to 1.4%.

The National Statistics Institute explained that the groups most influencing the change in the annual rate were housing, which had dropped by nearly four points, to 0.5%, due to lower electricity prices, and transport, which showed a rate of -0.7%, more than one point lower than in March, as a result of the reduction in the prices of fuels and lubricants.

Meanwhile, the month-on-month increase in April, the third consecutive rise, was due mainly to the rising cost of clothing and footwear for the spring-summer season, and also to the rise in prices of food and non-alcoholic beverages.

Specifically, the clothing and footwear group registered an increase of 10.1% month-on-month, while food and non-alcoholic beverages rose by 0.3%.

In contrast, El Mundo reported that the declines experienced in April, month-on-month, were in housing prices (-1.5%), due to the lower price of electricity, transport (-0.8%) due to decreases in the prices of fuels and lubricants, and communications (-2.5%) as a result of the lower cost of telephone services.

The annual CPI rate decreased in all regions. Most notable among them are Castile and Leon (1.2%) and Catalonia (1.8%), both with a drop of 1.2 points. The smallest decreases occurred in the Balearic Islands, the Canary Islands, Extremadura, the Basque Country and La Rioja, whose rates are all nine-tenths lower than those recorded in March.

As for the Harmonised Consumer Price Index (HICP), it stood at 1.5% in April, more than one point lower than in March, while core inflation, which excludes prices of energy products or unprocessed food, dropped by four-tenths to 1.9%.

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