Spain's Inflation Update: A Slight Dip in January

In a recent update from Spain's National Statistics Office (INE), the annual inflation rate for January was finalized at 2.9%, a slight revision from the initial estimate of 3%. This figure represents a minor increase from December's rate of 2.8%.

Key Drivers Behind the Inflation Rate

The primary factors contributing to this acceleration in inflation were transportation and housing costs. Transportation prices saw a 1.3% increase year-over-year, while housing prices surged to an annual inflation rate of 7.9% in January.

Monthly and Core Inflation Insights

On a monthly basis, consumer prices experienced a 0.2% rise. The Harmonized Index of Consumer Prices also reflected a 2.9% year-on-year increase but showed a 0.1% decrease from December. Additionally, the core inflation rate, which excludes unprocessed food and energy products, was recorded at 2.4%.