The estimated annual inflation is reduced by six tenths compared to January, according to the INE
The Consumer Price Index (CPI) has registered a drop of six tenths in February, standing at 2.8% annually, according to the provisional figures of the advanced indicator produced by the Spanish Institute of Statistics ( INE). This decrease is mainly due to the cheaper electricity compared to the same month of the previous year, and to the moderation in the prices of food and non-alcoholic beverages, which rose during February 2023. On the contrary, they have risen fuel prices that just in the same period a year ago had fallen.
Core inflation remains at 3.4%, well below that of a year ago
As for the estimated annual rate of change in underlying inflation (the general index without unprocessed food or energy products) it has decreased by two tenths compared to January and stands at 3.4%. A much lower percentage than last year, which was 7.5%. This difference is due to the effect of the covid-19 pandemic, which caused a sharp rise in the prices of basic products and a sharp fall in the prices of services.
Inflation will confirm the decline in March, according to forecasts
If the advanced indicator is confirmed with the final data next March 14, inflation will have fallen six tenths, since in January the variation was 3.4%. This downward trend could continue in March, according to analysts’ forecasts, which point to a moderation in energy and food prices. However, inflation could pick up again from April, when prices are compared with those of a year ago, when the lockdown and economic activity came to a standstill.
