• In April. Inflation climbs to 4.1% and food moderates although they remain 12.9% more expensive than a year ago

The year-on-year inflation rate of the economy has moderated to 3.2% in May, which means that consumer prices registered in this month in Spain have been 3.2% higher than those in the country in May 2022, a difference lower than last month (4.1%) and that confirms the downward trend -with steps- of this indicator.

However, although this year-on-year distance is being reduced, core inflation, the main cause for concern, since it reflects the trend of rising prices that is not due to specific or speculative movements by excluding the evolution of energy products and fresh food, stood 6.1% above of the level of the previous year, which represents a decrease of five tenths compared to last month (then it was 6.6%), but it is still a very high increase that will force the European Central Bank (ECB) to continue increasing interest rates.

As explained by the National Institute of Statistics (INE) when publishing these data, "this evolution is due, mainly, to the decrease in fuel prices, which increased in May of the previous year. It also influences, although to a lesser extent, that the rise in the prices of food and non-alcoholic beverages has been lower than in May 2022. "

In monthly terms, prices fell in May by 0.1% compared to April, the first decline since November, while core inflation rebounded by 0.2%.

Last month, year-on-year inflation was 4.1% and the monthly rise of 0.6%, Funcas experts had predicted that in May the general index would fall to 3.5%, so the slowdown has been even greater, and that the monthly rebound by 0.3%, while finally it has fallen.

With this May record, which the INE will have to confirm in mid-June, average year-on-year inflation so far this year stands at 4.5%, which is what prices have risen on average compared to last year in the first five months of the year.

Although the slowdown in the year-on-year rate of inflation is positive, experts had already pointed out that it would be important this year to monitor the monthly rate, since on January 1 the composition of the CPI changed and, therefore, comparisons with the previous year would be distorted, with the monthly one giving the clue to how prices are behaving.

Nadia Calviño, First Vice President and Minister of Economy, celebrated today that "prices fell again in May." "Inflation in Spain is already around 3%. The data for May confirm the effectiveness of the Government's measures, the moderation of food prices, the fall in fuel prices and position our country as one of those with the lowest inflation in the European Union, "he said.

  • INE
  • Inflation

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