Spain: CPI rises to 3.4% in January, core inflation down to 3.6%

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The CPI rises 3 tenths of a percentage point in January to 3.4%, according to the data released by the INE, due to the rise in electricity prices and despite the drop in petrol prices. Thus, inflation is once again rising after two consecutive months of falls and is at its highest level since last October, when it reached 3.5%. For its part, core inflation moderated by two tenths of a percentage point to 3.6%, only two tenths of a percentage point higher than the general CPI.

The INE will publish the final CPI data for January on 15 February

For its part, the Spanish economy grew by 2.5% in 2023, one tenth more than expected by the government after growing twice as much as analysts forecast in the fourth quarter, after presenting a rate of change of 0.6%, compared to the 0.2% expected. Domestic demand contributed 2.1 points, while domestic demand did not contribute (its contribution was zero points).

The year-on-year change in GDP was 2%, compared with 1.9% in the previous quarter.

Thus, the Spanish economy chained its third consecutive annual growth in 2023, although last year’s growth has been the most moderate of that period: in 2021, GDP advanced by 6.4%, in 2022 it grew by 5.8% and now it has softened its momentum to 2.5%. These three years of growth follow the historic 11.2% decline in GDP caused by the outbreak of the coronavirus.

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The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.