Inflation remains stable in the Basque Country and Navarre, despite the slight rise in prices

Inflation remained stable in the Basque Country and Navarre in May, with the annual rate of the Consumer Price Index (CPI) at 3.2%, in line with the Spanish average, according to data published this Friday by the National Institute of Statistics of Spain  (INE).

Although the year-on-year inflation rate has remained virtually constant, prices have risen slightly in both communities: in the Basque Country, the CPI has risen by 0.2% compared to April, while in Navarre it has risen by a tenth, so that sincethe beginning of the year the cumulative inflation has reached 1.8% % in the Basque Country and 1.7% in Navarre.

In the case of Navarra, the largest monthly increases are in Personal Care and Others  (0.6% increase) and Health (0.5%), followed by Food and Non-Alcoholic Beverages , Restaurants and Accommodation and Furniture and Home Goods (0.4%), while Alcoholic Beverages and Tobacco (-0.6%) , Recreational Activities, Sport and Culture (-0.5%), Housing and Communications (-0.3%) and Transport (-0.2%).

In addition, since the beginning of the year, there have been significant increases in Transport  (6.3%), Insurance and Financial Services  (5.5%), and in Alcoholic beverages and tobacco  (3.3%).

Price developments in both communities have occurred in the context of international economic uncertainty and volatility in energy markets , factors that continue to shape the trajectory of inflation despite the moderation experienced in recent months.

Situation in Spain

For Spain as a whole, the Consumer Price Index has maintained its year-on-year rate in May at 3.2%, exceeding 3% for three consecutive monthsas a result of the shock caused by the war in Iran, which, according to the INE, has been driven mainly by higher transport prices, as well as by the development of recreational, sporting and cultural activities.

The most significant increasein underlying inflation in state data has been , an indicator that excludes unprocessed food and energy products, rising to 3% in May, two tenths higher than in April and one tenth higher than forecast, indicating that inflationary tensions persist in most consumer goods and services.

On the other hand, the Spanish Government has explained that the stability of inflation has been favoured by the support measures put inplace in the face of the economic consequences of the conflict in the Middle East and the increasing weight of renewable energies in the energy system, as well as by the fact that electricity and gas prices have continued to be limited in May, and has announced that it is in contact with the sectors concerned to study the continuation of the aid measures currently in place.