Core inflation climbs to 4.4%, its highest level since the end of 1995

MADRID, 13 May. (EUROPA PRESS) -

The Consumer Price Index (CPI) fell 0.2% in April compared to the previous month and cut its year-on-year rate 1.5 points, to 8.3%, due to lower electricity and gasoline prices, according to the final data published this Friday by the National Institute of Statistics (INE).

These figures improve the data advanced by the agency at the end of last month, which pointed to year-on-year inflation of 8.4% in April and a monthly rate of -0.1%.

Despite the fact that the CPI continues at unusually high levels, this indicator has not dropped so much in a single month for more than 35 years, specifically since January 1987. The one in April is also the first drop experienced by inflation after two months of strong rises, which led the CPI to stand at 9.8% in March, its highest rate in almost 37 years.

According to Statistics, the moderation of the interannual CPI to 8.3% is mainly due to the decreases in the prices of electricity and fuel.

Specifically, the transport group reduced its interannual rate by almost six points, to 12.8%, due to the lower cost of fuels and lubricants for personal vehicles. Within this group, on the other hand, the prices of automobiles and passenger air transport rose.

For its part, the housing group cut its year-on-year rate in April by more than 14 points, to 18.8%, due to lower electricity prices. In the opposite direction, the prices of gas and fuels for heating rose.

Electricity has become 34.9% more expensive in the last year, including the tax reductions applied to the electricity bill (in March 2022 this increase was 107.8%). Discounting these tax cuts, the year-on-year rise in the price of electricity would be 54.4% in April.

Excluding the reduction in the special tax on electricity and the variations in other taxes, the interannual CPI reached 9.3% in April, one point above the general rate of 8.3%. This is reflected in the CPI at constant taxes that the INE also publishes within the framework of this statistic.

Faced with the moderation in the housing and transport groups, food prices registered an interannual rate of 10.1% in April, more than three points higher than that of March, due to the general rise in most of its components, highlighting the increase in the cost of meat, bread and cereals, legumes and vegetables, and milk, cheese and eggs.

The group of hotels, cafes and restaurants also raised its interannual rate, almost 1.5 points more than in March, up to 5.8%, due to the higher cost of accommodation and restaurant services, and the group of leisure and culture, which increased its annual variation by almost two points, up to 2.9%, due to the higher cost of tourist packages.

Core inflation (excluding unprocessed food and energy products) increased by one point in April, to 4.4%, its highest value since December 1995. Thus, core inflation is almost four points below the rate of the overall CPI.

In monthly rate, the CPI registered a decrease of 0.2% in April compared to March, its first fall after two months of increases. It is also the first negative monthly rate of inflation in the month of April in 30 years, specifically since April 1992.

In the fourth month of 2022, the Harmonized Consumer Price Index (IPCA) placed its interannual rate at 8.3%, one and a half points below that of March. For its part, the advance indicator of the IPCA fell by 0.3% in monthly rate.