Consumer Price Index Shows Decrease in Inflation Rates as Fuel Prices Fall

The Consumer Price Index (CPI) recorded a decrease in its year-on-year rate in December, dropping by one-tenth to 2.9%. This change, attributed mainly to declining fuel prices, was reported by the National Institute of Statistics (INE) on Tuesday. This decline marks the second consecutive month of decreasing inflation rates, following a peak of 3.1% in October, which was the highest in 16 months. Statistics indicated that the reduction in prices for fuels and lubricants used in personal vehicles was the primary driver behind this trend. The comparison was made to the previous year when these prices saw significant increases. Additionally, while prices for leisure and culture have risen, they have done so less sharply compared to December 2024. On the other hand, food and non-alcoholic beverages have contributed to inflation, with price increases exceeding those of the previous year. For the year 2025, the average general inflation closed at 2.7%, which is one-tenth lower than the rate recorded in 2024. This suggests that families are beginning to regain some purchasing power, as highlighted by the Ministry of Economy. Core inflation, which excludes unprocessed food and energy products, remained steady at 2.6% in December, matching the rate from November. If confirmed, this would place core inflation at its highest level since December 2024, when it also stood at 2.6%. For the year 2025, the average core inflation is reported to be 2.3%, a decrease from 2.9% in 2024, aligning with the European Central Bank's (ECB) objectives. In terms of monthly statistics, the CPI experienced a slight increase of 0.3% from November to December, representing a marginal rise compared to the previous month. The harmonized CPI (HICP) also showed a decrease, cutting its year-on-year rate by two-tenths to 3%, with a monthly variation of 0.3%. The estimated core inflation for the HICP in December is recorded at 2.8%. The INE is expected to publish the final CPI data for December on January 15, which will provide a clearer picture of the economic situation going forward. Related Sources: • Source 1 • Source 2