The leading indicator of the Consumer Price Index (CPI) for the month of June leaves the lowest inflation figure since April 2021. According to information published by the National Statistics Institute (INE), year-on-year inflation stood at 1.9% in June. If this figure is confirmed on 12 July, it would be more than one point lower than the figure recorded in May (3.2%).
Yesterday morning, the Minister of Economy, Nadia Calviño, appeared before the media at the DigitalES Summit 2023, pointing out that “Spain is the first major European economy in which inflation has fallen below 2%”. The Minister of Economy also highlighted the “gain in competitiveness and market share for Spanish companies”, as well as the “relief” for families as they are able to regain purchasing power.
This drop is due to the lower rise in the price of fuel, electricity and food and non-alcoholic beverages compared to June 2022. However, the month-on-month rate rises to 0.6%, six tenths of a percentage point more than the previous month.
The underlying CPI rate, which does not include unprocessed food and energy products, stood at 5.9%, only two tenths of a percentage point less than in May. June thus marks the seventh month in which the underlying rate has exceeded the general index.
