Final data published by the National Statistics Institute (INE) showed that in December consumer prices rose by 3.1% per annum (lowest rate since August 2023) after rising by 3.2% per annum in November. The latest increase coincided with economists' forecasts. On a monthly basis, the CPI was unchanged, as expected, after falling by 0.3% in November.
INE said that the prices of housing fell by 5.9% per annum after falling by 5.7% per annum in November, while price growth for food and non-alcoholic beverages slowed to 7.3% per annum from 9% per annum.
Average inflation for 2023 fell to 3.5% from 8.4% in 2022, mainly on the back of a 37% annual decline in electricity prices.
The core CPI - excluding non-processed food and energy prices - rose in December by 3.8% per annum (the weakest growth since March 2022) after an increase of 4.5% per annum in November. But the rate remained well above the European Central Bank's target of 2.0%.
The data also showed that in December, the harmonized index of consumer prices (HICP) - an indicator that allows to compare inflation in Spain with inflation in European countries - did not change on a monthly basis and rose by 3.3% per year. In November, HICP decreased by 0.5% m/m and increased by 3.3% per annum.