Bankinter | CPI (July): +0.0% year-on-year versus -0.1% expected versus +0.1% previously.
Bankinter analysis team’s view: prices remain positive for the second consecutive month. The underlying rate reached +0.8% compared to +0.7% previously. It seems that the government measures to moderate excessive competition in some sectors are beginning to have some effect, despite the fact that industrial prices continue to exert downward pressure (-3.6% year-on-year in July compared to -3.3% expected and -3.6% previously). Prices have been negative for several months in an environment of weak domestic demand and price wars in several sectors suffering from overcapacity. The GDP deflator, a broader measure of prices, has fallen for nine consecutive quarters.
