Spanish Consumer Price Inflation Holds Steady In August, Yet Below Consensus

Sep 13, 2007 - Spanish consumer price inflation grew at an annual rate of 2.2% in August, the National Statistics Institute said, Thursday. Consumer prices grew at the same rate of 2.2% in the previous month also. The price rise in August was a little less than the 2.3% annual growth predicted by economists. Over the month, consumer prices slipped 0.1%, recovering from a slump of 0.7% in the previous month. Economists had expected a 0.2% growth in monthly consumer prices in August.

In August, prices of spirits and tobacco climbed 6.5% annually, slightly more than the 6.1% increase in prices in the previous month. Prices of food and non-alcoholic beverages advanced 2.8%, while transport prices declined 0.1%. Prices of milk grew 4.9%, while prices of tobacco jumped 8.1%. In contrast, prices of oils slumped 16.6%, while prices of fuels and lubricants eased 4.2%.

On a monthly basis, prices in hotels, cafes and restaurants grew 0.8% in August, while prices in the leisure and culture sector rose 1.3%. Prices of food and non-alcoholic beverages edged up 0.3%, pushed by higher prices for milk, fish and bread. In comparison, transport prices slipped 0.5%, pulled down by the decline in prices of fuels and lubricants. Prices of clothing and footwear eased 0.7%.

The underlying rate of inflation, that is, the general consumer price index stripped of food and energy products prices rose 2.5% annually in August.

The Harmonized Index of Consumer Prices, HICP, which is used to compare Europe wide prices, advanced 2.2% on an annual basis, while the monthly growth rate came in at 0.2%.