Annual Inflation Up Four Tenths in June

Inflation rose 0.2% in June compared with May, and climbed four tenths year-on-year to 2.1%, according to the consumer price index (CPI) flash estimates, released on Thursday by the National Statistics Institute.

This increase was a result of the rising prices of fuels and lubricants, compared with the decrease that these products recorded in June 2012. According to the latest data from the European Union Oil Bulletin, petrol and diesel prices registered annual increases of 4.6% and 2.3%, respectively, in the month of June.

Cinco Dias reported that the definitive figure will be announced on 12th July and, if confirmed, would mean that the CPI has accumulated two consecutive months of increases, after the increase of three tenths experienced in May, taking inflation to 1.7%. Year-on-year, however, inflation is still below the rate at which it started the year (2.7%).

The Economy Minister, Luis de Guindos, said that the Government expects the CPI to be contained during the year, to the point that it could close the year below 1%, and stressed that this would bring pensioners more purchasing power.

The National Statistics Institute highlighted that month-on-month (June over May), during the sixth month of the year prices registered a rise of 0.2%, accumulating five consecutive months of increases, following the 0.2% rise experienced in May.

Meanwhile, according to the Harmonised Consumer Price Index (HCPI) flash estimates, also published on Thursday, inflation stood at 2.2% in June, year-on-year, which is four tenths above the figure for May. Month-on-month, the HCPI rose by 0.1% in the sixth month of the year.

The HCPI, prepared by the National Statistics Institute, measures price movements using the same method in all the countries of the eurozone.