May 16, 2021

The CPI fell to 1.2% in December due to lower fuel prices

The CPI fell to 1.2% in December due to lower fuel prices


The consumer price index (CPI) closed 2018 at 1.2% year-on-year, after having moderated by more than one point in the last two months of the year. The National Institute of Statistics (INE) has confirmed on Tuesday the inflation data of last December, which it is five tenths lower than in November as a result of the drop in the prices of fuels, especially diesel and gasoline.

Although year-on-year inflation has practically halved in the last two months of the year (from 2.3% in October), the 2018 closing at 1.2% is one tenth more than at the end of 2017 (1.1%).

The interannual rate for December is the twenty-eighth positive rate that links the annual CPI and implies that prices are 1.2% higher than a year ago. After six months above 2%, in the penultimate month of the year the CPI fell from that barrier, a trend that has continued in December, and placed at its lowest level since April.

According to the INE, among the groups that contributed to the moderation of the interannual rate of the CPI in December are the transport, which cut more than 3 points its annual rate, up to 0.2%, due to the cheaper prices of fuels; housing, whose annual rate fell three tenths, to 2.5%, due to the lower cost of heating oil, and hotels, which reduced their rate by three tenths, to 1.8%, due to the reduction in services accommodation.

On the other hand, among the promotions, the leisure and culture group stood out, which increased its interannual rate by four tenths, to -0.1%, due to the increase in tourist packages.

During the last twelve months, The annual rate of the CPI has decreased in December in all the autonomous communities. to November. The greatest decreases occurred in Castilla-La Mancha and Extremadura, with decreases of eight and seven tenths, respectively.

On the other hand, Canarias, Andalucía and La Rioja were the communities where the annual rate decreased the least, with a decrease of two tenths in the first, and four tenths in the last two.

In December 2018, the year-on-year inflation was most marked by the Canary Islands, Catalonia and Madrid (all with 1.4%), as well as Navarra, which also closed the year above the Spanish average (1.3%). Only Melilla concluded with a negative rate (-0.3%).


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