Inflation falls for first time since January to 3.1pc

14 June 2005

MADRID — Inflation rose in May by 0.2 percent compared to the month before, according to the latest figures released.

But the Spanish National Institute of Statistics (INE) said year-on-year inflation had fallen four points to 3.1 percent.

It is the first time since January that inflation has fallen, thanks to the yearly fall in energy prices internationally, analysts said.

Figures for inflation, not including prices for energy or fresh food, fell two points at 2.6 percent year-on-year.

The rise in inflation during May was due partly to the increase in clothing prices (1.1 percent), reflecting summer sales and seasonal trends.

Other areas where prices rose included kitchenware (0.5 percent), hotels, cafes, restaurant (0.3 percent) and food and non-alcoholic drinks(0.1 percent).

Internationally, prices fell in May by four points compared to the same point in 2004, due to the fall in energy prices. 

However, the only sectors where prices went down were in tourism (-0.4 percent), because of the fall in the package holiday market, and in the communications sector (-0.1 percent) because of the cuts in telephone prices.

House prices rose 5.1 percent year-on-year, but were three points lower than in April.

[Copyright EFE with Expatica]

Subject: Spanish news