• The interannual inflation rate goes up by three-tenths reaching -0.7%
• The underlying inflation, which excludes the most volatile elements, remains at an interannual rate of 0.1%
• The harmonised inflation rate in Spain is five-tenths below the Eurozone average

The Retail Price Index (RPI) rose seven-tenths in October compared to the previous month, and the interannual rate reached -0.7%. Last month, the inflation rate was at -1%, and twelve months ago, at 3.6%.

As such, prices are returning to moderately positive levels which the government continues to forecast for the end of the year. During the final quarter of 2008, there was a significant drop in oil prices. As such, a swift recovery in the inflation rate over the coming months may be expected, due to the impact the energy component has on the shopping basket.

The energy components are once again the reason why the RPI remains at negative interannual rates, if more moderate than in previous months. The figures for fuels (-10.9%), energy products (-6.5%) and unprocessed foods (-4.3%) stand out.

Where the RPI monthly variation rates are concerned, the increases can be attributed to the upturn in non-energy industrial goods. Specifically, the monthly increase recorded for Clothing and Footwear stands out (+9.6%).

Where the underlying inflation is concerned, which excludes the most volatile elements such as energy and unprocessed foods, this went up nine-tenths in October, such that the interannual rate remains at 0.1%.

The Spanish Institute for Statistics (INE) has also published the harmonised RPI for the month of September, which was -0,6% in year-on-year terms. Should the data disclosed by Eurostat for the Eurozone be confirmed, estimated at -0.1%, the inflation differential with the Eurozone average will go down by two-tenths, putting the harmonised inflation rate in Spain 0.5 percentage points below the Eurozone average.