Spain's CPI Sees Year-End Rise: A Reflection of Fuel Prices and Economic Policy Measures
The Consumer Price Index (CPI) in Spain has witnessed a notable increase of four tenths in December, reaching an annual rate of 2.8%. This rise is primarily attributed to surging fuel prices and a lesser yet significant uptick in leisure and culture prices. According to preliminary data released by the National Institute of Statistics (INE) this Monday, the core rate of the CPI, which excludes fresh food and energy, has also seen an increase of two tenths, amounting to an annual rate of 2.6%.
This advance marks the third consecutive month of CPI increases, with the inflation rate now at its highest since July 2023, when it also stood at 2.8%. The Ministry of Economy, Trade, and Business explains that this year-on-year CPI increase can be attributed to the base effect created by fluctuating fuel prices. However, it also notes that despite this year-end spike, the CPI has closed 2024 at 2.8%, which is eight tenths lower than the average inflation rate of 3.6% seen in 2023.
Over the course of the year, both general and core inflation rates have been consistently decreasing. This trend of reduction indicates the effectiveness of the economic policies implemented by the government. The measures are believed to have facilitated a balance between fostering economic growth within the major economies of the Eurozone while simultaneously achieving a continuous decline in inflation rates.
Carlos Cuerpo, the head of the Ministry of Economy, emphasized that this reduction in inflation rates demonstrates the success of the economic policies that have been set in place. They aim to ensure sustainable growth and economic stability even in the face of rising global prices, especially in the energy sector.
As the year 2024 closes, stakeholders and economists will be looking closely at how these policies evolve and whether they can maintain the downward trend in inflation as Spain heads into a new economic phase.
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