Spain: Inflation continues to rise in January
February 15, 2011
In January, consumer prices dropped 0.7% over the previous month, contrasting the 0.6% rise recorded in December. Annual inflation rose from 3.0% in December to 3.3%, which was in line with the preliminary estimate released by the Statistical Institute on 31 January and represented the highest level since October 2008. The monthly drop was mainly driven by lower prices for clothing and footwear (-14.2% month-on-month) owing to winter sales, as well as for recreation and culture (-1.8% mom), which offset higher prices for housing (+2.8% mom) and transport (+1.4% mom). The core inflation index, which does not include prices for unprocessed food and energy, dropped 1.5% over the previous month. Despite the drop, annual core inflation inched up to 1.6% in January from 1.5% in December. More recent data point to a rise/ in inflationary pressures. According to a preliminary estimate released by INE on 28 February, annual inflation increased to 3.6% in February.