The IPC shoots at 5.5% in October, the largest rise in 29 years

Prices continue with its climbing in October and are already 5.5% higher than they were a year ago, which represents the largest year-on-year increase in 29 yea

The IPC shoots at 5.5% in October, the largest rise in 29 years

Prices continue with its climbing in October and are already 5.5% higher than they were a year ago, which represents the largest year-on-year increase in 29 years, since September 1992, according to the price index To consumption (CPI) this month advanced this Thursday by the National Institute of Statistics (INE).

This assumes that the increase in the goods and services continues to accelerate, since in the month of September the rise in prices with respect to the same month of the previous year was 4%.

In addition to the base effect - proved by comparing the data with a period of 2020 in which the prices fell by the effect of the pandemic - the rise of the IPC is explained by the increase in price of electricity and, to a lesser extent, of Gasoline and gas, which last year were downward on these same dates.

The underlying inflation - which does not take into account the price of food or energy products for being more volatile - also registers an increase although much more moderate, of 1.4%.

The INE notes that since August 1986 there was no difference so high between both indicators, reflecting the excessive increase in energy prices and the shopping basket compared to the rest of the products and services. In monthly rate, prices are 2% higher than in September.

According to these advanced data, in which the evolution of prices of each type of product, the goods considered "Estate Covid-19" - include food, beverages, non-durable goods for home, pharmaceutical and doctors, products For pets and personal care articles - have been uploaded by 1.3% year-on-year - in line with the above month rise.

The highest rise has been recorded by "Covid-19 Services", which measure housing rental prices, supplies (water, electricity, gas ...), telephony services, suguros, bank commissions and funeral services. The prices of these services are 16.2% higher than a year ago and 3.6% higher than a month ago. In September, the prices of "Covid-19 Services" rose 10.5% in year-on-year terms.

With this rise, the average IPC of 2021 is already at 2.5%, well above the inflation expectation of 0.9% that the Government had predicted and also of the price stability of 2% marked by The European Central Bank.

Updated Date: 28 October 2021, 08:34

You need to login to comment.

Please register or login.

RELATED NEWS