Prices remain at -0.8%: electricity goes up and food goes down

Prices remain negative in November due to the impact of the pandemic. The advance data of the CPI revealed this Monday by the INE shows that prices remained at -0.8% in November in the interannual rate due to the fact that electricity registered a slight rebound compared to the decrease of a year ago, which compensated for the cheaper food, which in November 2019 remained stable.

That the CPI stands at -0.8% supposes to chain eight consecutive months in negative. However, in a monthly rate (November over October), the CPI increased 0.2%, the same growth as a year ago.

In October, the CPI put an end to two months of price increases and registered for the second time its lowest level since May 2016. Since March, the situation generated by the covid started a path of price declines in Spain, fundamentally influenced by the collapse of energy components. Thus, in April the CPI registered a -0.7% annual rate, which fell to -0.9% in May. In June the fall moderated to 0.3% to go to 0.6% in July, 0.5% in August and 0.4% in September. The October data led to a return to the May level, which is maintained in November.

After the end of the state of alarm on June 22, all the products that make up the IPC are available for purchase by citizens. The INE explains that in the CPI for November the price collection has continued in person, maintaining the collection by telematic means when, for health security reasons, it has not been possible or convenient to do it in person.


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