This trend is due to the performance of unprocessed food prices which, after rising in June, fell in July and were offset by rising prices of energy products, non-energy industrial goods (NEIG), and processed food. In month-on-month terms, the CPI posted a 0.7% drop in July 2017, the same as in July 2016.
Energy product prices grew by 4.1% year-on-year, four tenths more than in June. This was mainly due to rising fuel and lubricant prices, which increased from 0.4% year-on-year in June to 1.9% in July, offset in part by the lower growth rate of electricity prices, which slowed by 2.2 points to 6.2% year-on-year in July. Meanwhile gas prices increased by seven tenths to 10.7%.
Food inflation stood at 0.3% in July, six tenths lower than in the previous month. Prices of unprocessed food went from growing by 1.4% in June to falling by 1% in July, with the performance of fresh fruit, up by 9.4 points (from 2.6% down in June to 12% up in July) playing an important role. Prices of processed food, drink and tobacco grew by 1% in July, three tenths more than in June, partly due to a two point increase in the price of oils and fats to 6.1%.
Core inflation (which excludes the most volatile elements of CPI, fresh food and energy) increased by two tenths in July to 1.4%, due to rising NEIG and processed food prices. NEIG prices grew by 0.3% year-on-year in July, one tenth more than in June, aided by the inflation rate of clothing and footwear increasing by 0.4%. Processed food was up by 1%, three tenths more than in the previous month, while the rate of change of service prices remained constant at a year-on-year 1.9%.
In month-on-month terms the CPI posted a 0.7% drop in July 2017, identical to the figure for the same month in 2016. By components, prices of services grew by 0.7%, the same change as the previous year. NEIG prices fell by 3.7%, two tenths less than in July 2016 (-3.9%), food prices remained unchanged compared to the 0.6% increase the previous year, while energy product prices shrank by 0.6% after falling by 1% in July of the previous year.
In the food category, prices of unprocessed food in July 2017 posted a month-on-month decrease of -0.4% (2.1% in the same month 2016), while those of processed food grew by 0.1% (-0.1% the previous year).
In July the year-on-year CPI grew in nine autonomous regions, remained unchanged in three, and shrank in the five remaining regions. The biggest inflation rate increases were posted in Catalonia, Basque Country and Asturias (two tenths each, to 1.9%, 1.7% and 1.3%, respectively), and the biggest decreases were recorded in Murcia and the Canary Islands (two tenths each, to 0.9% and 1.5%, respectively).
The year-on-year constant tax CPI rate for July stood at 1.5%, the same as the general CPI.
The INE has also published the harmonised CPI (CPIA) for July 2017, with a year-on-year variation of 1.7%, up by one tenth over June's figure. Meanwhile, the rate advanced by Eurostat for the Eurozone was 1.3% in July, the same as in the previous month, giving rise to an inflation differential favourable to Spain over the Eurozone by 0.4 points, one tenth higher than June's figure.
Non official translation
EFE