Economy highlights that the food affected by the VAT reduction lowered its prices by 1.6%, especially fruit
MADRID, 15 Feb. (EUROPA PRESS) –
The Consumer Price Index (CPI) fell two tenths in January in relation to the previous month, but raised its interannual rate by two tenths, up to 5.9%, due to the higher price of fuel, telephone services and clothing and footwear, according to the final data published this Wednesday by the National Institute of Statistics (INE).
The final year-on-year inflation for January is one tenth higher than the rate advanced at the end of last month, when the INE pointed to a rate of 5.8%, while the monthly reduction was finally two tenths, compared to the cut of three tenths initially estimated.
With the increase registered in the first month of 2023, inflation breaks with five consecutive months of decreases in its interannual rate, in which it fell by more than five points.
The INE data, which include, for the first time, weightings from the National Accounts, as well as the free gas and electricity markets, have confirmed their initial estimate of underlying inflation (excluding unprocessed food and energy products), which closed January at 7.5%, a rate five tenths higher than that of the previous month and the highest since December 1986. With this data, the underlying rate exceeds the general index by more than 1.5 points.
From the Ministry of Economic Affairs it has been highlighted that the interannual rate of the CPI has only increased two tenths in January, “despite the rise in fuel prices” and after the withdrawal of the 20 cent bonus in general.
The economy expects underlying inflation to reflect the decline in general inflation and energy costs and other raw materials in the coming months.
According to the INE, food prices grew by 15.4% in the interannual rate in January, three tenths less than in December, after the VAT reduction applied to certain products in the shopping basket.
In fact, the Department headed by Nadia Calviño has highlighted that the prices of food affected by the VAT reduction fell by 1.6% in January compared to December, in contrast to the 1.4% rise experienced by the other products in the basket not affected by the tax reduction.
Thus, Economy has stressed that there has been a “generalized” drop in foods in which the VAT reduction from 4% to 0% has been applied, such as bread (-0.2%), milk (-1.5 %), eggs (-1.5%), fresh fruits (-4.2%), legumes (-1.1%), potatoes (-1%), flour (-2.3%) and cheese (- 0.7%). In the case of those who have had a VAT reduction from 10% to 5%, the decrease in the prices of olive oil (-1.2%) and pasta (-3.5) stands out.
(((WILL BE EXTENSION)))
