Summer sales help keep annual inflation at 3.2pc

15th July 2005, Comments 0 comments

15 July 2005, MADRID — A drop in the price of clothes and shoes with summer sales helped offset a rise in inflation in June, analysts said.

15 July 2005

MADRID — A drop in the price of clothes and shoes with summer sales helped offset a rise in inflation in June, analysts said.

Inflation went up 0.2 percent last month, holding steady at 3.2 percent year-on-year.

The fall in clothing and footwear prices offset rises in crude oil prices and transport costs, according to the Spanish National Statistics Institute.

Transport prices went up 0.8 percent in June and were up 5.3 percent year-on-year.

But clothing and footwear prices went down by 0.6 percent in June, though rose 1.1 percent compared with the same period last year.

Hotel and restaurants prices rose 0.5 percent in June and 4.3 percent from June 2004.

Underlying inflation, which does not include fresh food and energy products, fell 0.1 percent from May. The annual rate was 2.5 percent compared with 2.6 percent the previous month.

David Vergara, secretary of state for the economy, said if crude oil prices remain at current levels of around USD60 a barrel "substantial changes" in the inflation rate should not be expected this year.

He said the Spanish economy had withstood the rise of crude oil prices well, with annual growth of 3.3 percent.

[Copyright EFE with Expatica]

Subject: Spanish news

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