This performance is explained by falling energy prices, in particular fuels and lubricants and to a lesser extent electricity, and the slower growth rate of unprocessed food prices. Conversely, prices of services, processed food, and non-energy industrial goods (NEIG) accelerated. In month-on-month terms, the CPI remains unchanged in June 2017, compared with the 0.5% increase in the same month of 2016.
Energy product prices increased by 3.7% year-on-year, 4.6 points less than in May. This trend is due to a deceleration of prices of fuels and lubricants, down from 4.9% year-on-year in May to 0.4% in June and, to a lesser extent, lower electricity prices, whose growth rate eased by 7.8 points to 8.4% year-on-year. Meanwhile, gas prices rose by 1.7 points to 10%.
Food prices grew by 0.9% in June, three tenths less than in May. Inflation of unprocessed food stood at 1.4%, 1.4 points less than the previous month. Noteworthy is the performance of fresh fruit prices, which went from increasing by 3.2% in May to falling by 2.6% in June and, to a lesser extent, pulses and fresh vegetables prices, which slowed by 2.3 points to 1%. Prices of processed food, drinks and tobacco increased by 0.7% in June, three tenths more than in May.
Core inflation (which excludes the most volatile elements of CPI, fresh food and energy) increased by two tenths in June to 1.2%, due to the acceleration of all its components, mainly services and to a lesser extent processed food and NEIG prices. Service prices increased by two tenths to 1.9% on the back of rising tourism and hotel and catering sector prices, which grew from 2.4% year-on-year in May to 3% in June and, to a lesser extent, interurban public transport prices, up by 2.7 points to 3.5%. Meanwhile NEIG prices increased in June by 0.2%, one tenth more than in May.
In month-on-month terms, the CPI was unchanged in June 2017, compared with the 0.5% growth recorded in the same month of 2016. Broken down by components, prices of services increased by 0.5% compared with the 0.3% increase in June 2016; NEIG prices shrank by 0.3%, as they did in June 2016; food prices remained unchanged compared with the 0.2% increase last year; and energy product prices shrank by 0.9% after a 3.5% increase in June the previous year.
In the food category, prices of unprocessed food in June 2017 recorded a month-on-month change of -0.5% (versus 0.9% in the same month of 2016) while processed food prices grew by 0.2% (-0.1% the previous year).
In June the year-on-year CPI fell in every autonomous region. The smallest drop compared with May was posted by the Canary Islands (three tenths to 1.7%) while in all the other regions inflation fell by four or five tenths.
The year-on-year constant tax CPI rate for June stood at 2.6%, the same as the general CPI.
The INE has also published the harmonised CPI (CPIA) for June 2017, with a year-on-year variation of 1.6%, four tenths lower than May's figure. Meanwhile, the rate advanced by Eurostat for the Eurozone was 1.3% in June, one tenth lower than the previous month, giving rise to an inflation differential favourable to Spain over the Eurozone by 0.3 points, three tenths lower than May's figure.
EFE