The shopping basket is 15.4% more expensive than a year ago, the highest percentage in the historical series
Prices moderated in the month of October and there were three delays. The CPI rate was 7.3% year-on-year, as confirmed by the INE on Tuesday, representing a one-and-a-half point drop from the previous month, when it had also fallen by that rate. From the peak reached in July at 10.8%, they are down more than three percentage points in two months.
And this despite the fact that food is booming, 15.4% more expensive than a year ago, the rate rose by one point from September to the highest point since the beginning of the historic series in January 1994. In particular, the rise of the costs of sugar (42.8%), legumes and vegetables (25.7%), chicken (18.3%), milk (25%), eggs (25.5%) and oil stand out (24%) .
The moderation in inflation in October is mainly due to the lower price of electricity and, to a lesser extent, gas, compared to the prices of a year ago. Thus, the group that stands out for its downward impact on the CPI rate is Housing, which fell by more than 11 points to 2.6% in October, precisely because of the decrease in electricity and gas compared to the increase of October 2021. Also clothing and footwear , due to the new autumn-winter season, increased less this year than in 2021 (1.4%, two and a half points less than in September).
Monthly (October to September), the CPI registered a 0.3% increase, higher than the 0.1% expected by the INE fifteen days ago. This is mainly due to the increase in the price of fruit (8.5%) and vegetables (5.1%) over the past month, while electricity fell by 22.5% and gas by 6.4%.
The underlying asset is still very high and close to the general price. This index, which does not account for fresh food or energy, was 6.2% in October, placing it just 1.1 points below the overall CPI rate.
Ministry of Economic Affairs sources point out that the fall of more than one and a half points in inflation in October is “one of the largest monthly declines in the historical series since the introduction of the euro in 2002” and assure that from the maximum of the inflation recorded in July (10.8%), the government’s measures “made it possible to reduce inflation by 32%”.
Measures approved by the executive include the Iberian mechanism (ceiling on the price of gas for electricity production applied since mid-June), the reduction of VAT to 5% on the price of electricity and gas, the cap on the 2% increase in housing rents or reduction in transport prices.
The estimated annual rate of variation of the Harmonized Index of Consumer Prices (IPCA) in October stands at 7.3%, more than one and a half points lower than that of the previous month.
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
