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Rating CROEM CPI July 2011 (12/08/2011)

Regional inflation in the relaxed slightly in July but still remains at elevated levels.

In particular, the overall price increase was 2.9% compared to the same month of 2010, a rate lower than in the national (3.1%), and a tenth lower than that observed in June (3.0%), according to the Consumer Price Index (CPI) calculated by the INE.

The groups show a greater cost containment, with levels even lower than a year ago, are communications (-1.2%), Medicine (-0.7%) and Leisure and Culture (-0.3%) .

In contrast, higher inflationary pressures provide transportation (+9.0%), heavily influenced by high oil prices, costs associated with housing (+6.8%), and alcohol and snuff (+5.2%).

Taking into account the so-called core inflation, which excludes the most volatile, energy products and unprocessed food, the price increase is more moderate 1.3% in the last year, compared with 1.6 % found in Spain.

Finally, compared to the previous month, the basket became cheaper by 0.8%, since the sales period pushed down the prices of clothing and footwear (-13.8%), resulting intense enough to counteract the increases Leisure and Culture (+2.7%) and Alcoholic beverages and snuff (+1.9%).

In short, prices remain pressured upward by factors unrelated to the dynamics, as climbing oil prices or changes in tax regulations, whose effects should disappear in coming months.

Consequently, and in a scenario of high economic stress like the present, must advocate for the maintenance of price levels do not impede potential economic growth nationally and regionally.

Source: CROEM

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