January 17, 2021

The CPI moderates to 1% in January for fuels | Economy

The CPI moderates to 1% in January for fuels | Economy



Inflation has started the year down. The CPI stood at 1% in January, two tenths less than in December, according to the National Institute of Statistics (INE). The moderation of the inflation rate was due, according to the statistical agency, to the drop in gas prices, which rose in the same month last year, and the lower rise in the prices of diesel and gasoline compared to January. 2018. Nonetheless, the index has 29 positive consecutive months.

The CPI moderated in January for the third consecutive month and has fallen by less than half in those three months, going from 2.3% in October to 1% in January. In this fall, the price of energy and, particularly, that of petroleum products has played an almost absolute role. Although the INE does not break down exactly what products or services have become expensive or cheaper or in what percentages, it does indicate that they help to moderate the rate of inflation "the fall in gas prices, compared to the rise of last year" and "that the prices of fuels (diesel and gasoline) rise this month less than in January 2018. "

In the case of gas, in January 2018 they rose 5.6% compared to the previous month. However, throughout the year they maintained a fairly stable price and the INE anticipates that in January of this year they have fallen. As for diesel and gasoline, in January last year they rose, in monthly terms, by 2.3 and 1.5%, respectively. This past month, the increases have been lower.

The EU oil bulletin, that every week publishes the evolution of the price of both fuels in all the countries of the Union, can give clues of the data that the INE will publish in the middle of the next month when it breaks down the prices of the products of the basket. Thus, between December 17, the last bulletin of 2018, and December 28, gasoline has risen in Spain by 0.86%, while diesel has risen by 1.21%.

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