Prices rebound, inflation up to 4.1% in April, but underlying down to 6.6%

inflation rises

CdM : Prices rose again across the board in April. After the falls of recent months, inflation rose in the fourth month of the year to 4.1%, which is six tenths above the previous month and eight tenths higher than a year ago (it had not risen so much in one month since May 2022), according to the leading indicator of the National Statistics Institute (INE). The underlying rate, however, breaks the streak and falls.

The INE points out that this evolution is mainly due to the fact that the fall in electricity prices is less than that recorded in April 2022, and to the increase in fuels, which fell in April of the previous year.

ipc espana abril 23

On the other hand, the behaviour of food and non-alcoholic beverages stands out, with prices rising less this month than in April 2022.

For its part, core inflation (the general index without unprocessed food and energy products) fell by nine tenths of a percentage point to 6.6%.

As for the Harmonised Index of Consumer Prices (HICP), in April, the rate rose to 3.8%, seven tenths of a point higher than the previous month.

“After two consecutive years of strong growth of 5.5% in 2021 and 2022, with the growth recorded this first quarter, Spain has practically reached the GDP level prior to the pandemic, which is the last indicator pending recovery, as the rest are well above, as is the case of employment data, youth unemployment, investment and productivity per hour worked”, highlights the first vice-president and minister of Economic Affairs, Nadia Calviño.

She adds that, “in an international context of great uncertainty, marked by the consequences of Russia’s war in Ukraine, the Spanish economy continues to demonstrate its solidity and resilience”. And she considers that, “after the significant drop in inflation of two and a half points in March, as expected, general inflation has picked up due to the base effect when compared with the month in which the fuel rebate and the rest of the measures of the decree of 29 March 2022 were introduced”.

The final Consumer Price Index (CPI) data for April will be published by the INE on 12 May.

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