The CPI marks its lowest level since March 2021

MADRID, 29 Jun. (EUROPA PRESS) -

The Consumer Price Index (CPI) increased by 0.6% in June in relation to the previous month and cut its interannual rate by 1.3 points, to 1.9%, its lowest level since March 2021, due to the fact that the rise in fuel, electricity and food prices was less than that experienced a year earlier.

With the decline in June, inflation chains two consecutive months of falls after moderating nine tenths in May, to 3.2%, according to advanced data published this Thursday by the National Institute of Statistics (INE).

The INE includes an estimate of core inflation in the CPI data preview (excluding unprocessed food and energy products), which fell two tenths in June to 5.9%, standing 4 points above the overall CPI and at its lowest level since June 2022.

The Government has just extended the VAT reduction on basic foods that expired this Friday. Said tax reduction will be maintained as long as core inflation is above 5.5%.

The Ministry of Economic Affairs and Digital Transformation has highlighted, after knowing the June data, that Spain "is the first major economy in the euro zone to reduce inflation below 2%", the reference level of the European Central Bank (ECB).

"Spain remains one of the countries with the lowest inflation in the European Union, with the consequent gain in competitiveness and market share of Spanish companies," they point out from Economy.

The Department headed by Nadia Calviño has stressed that the measures adopted by the Government have made it possible to reduce inflation "by almost 9 points in less than a year".

The Ministry has also indicated that the inflation data for June confirm the moderation in the prices of food and non-alcoholic beverages, fuel and electricity. "The effectiveness of the main measures to reduce taxes and bonuses is confirmed," Economy has remarked.

In monthly terms (June over May), the CPI registered an increase of 0.6% compared to the price stability registered in the previous month.

In the sixth month of 2023, the Harmonized Consumer Price Index (IPCA) placed its interannual rate at 1.6%, more than one point below that registered in the previous month.

For its part, the estimated monthly variation of the IPCA was 0.6%.

The INE will publish the final CPI data for June on July 12.