The CPI and the cheaper electricity and food
According to data published by the National Institute of Statistics (INE), the consumer price index (CPI) experienced an increase of 0.4% in February compared to the previous month. This increase reduced the year-on-year rate by six tenths, placing it at 2.8%. This decrease is mainly due to cheaper electricity and food, which recorded price growth at the slowest rate in two years.
Variation in the prices of food and non-alcoholic beverages
The prices of food and non-alcoholic beverages increased by 5.3% compared to the same month of the previous year. This rate is 2.1 points lower than that of the previous month and the lowest since January 2022. This decrease is due to lower prices for legumes, vegetables and meat.
Reduction of electricity prices in the housing group
The housing group experienced a reduction of 4.2 points in the annual rate, placing it at -2.7%. This decrease is due to the decline in electricity prices, in contrast to the increase they experienced in February 2023.
Price increase in the transport group
The transport group registered an increase of 2.5 points in the interannual rate, placing it at 2.4%. This increase is due to the increase in fuel prices for personal vehicles and, to a lesser extent, for combined passenger transport.
Inflation and its evolution
With this year-on-year decrease in the CPI in the second month of the year, inflation has again registered declines after the rise in January and is at the lowest level since August last year, when it reached 2.6 %. In addition, inflation has fallen below the 3% barrier after five consecutive months above this level.
Underlying inflation
Core inflation, which excludes unprocessed food and energy products, fell by a tenth in February to 3.5%. This rate is seven tenths higher than the general CPI and the lowest since March 2022.
