Catalonia's inflation rate has fallen to 2.9% in July, marking a decrease of seven tenths from the previous month, according to figures released by the Spanish National Statistics Institute (INE). This marks the first decline in inflation after four consecutive months of increases in the Consumer Price Index (CPI).
The moderation in July's inflation rate is attributed to a slowdown in the price rises for electricity and food, as well as a lower increase in the cost of culture and leisure activities. This trend mirrors the broader Spanish inflation picture, which also saw a decrease to 2.8%, representing a six tenths fall from June.
The Core CPI, which excludes volatile prices, also exhibited a similar trend in both Catalonia and Spain. The Catalan Core CPI stands at 2.9%, down 0.4% from June. Spain's Core CPI is currently at 2.8%, reflecting a 0.2% decrease and marking the lowest percentage in the past two and a half years.
The decrease in inflation provides some respite from the rising cost of living pressures experienced earlier this year. While the overall economic outlook remains uncertain, the recent moderation in inflation suggests a potential shift in the economic landscape. It remains to be seen whether this trend will continue in the coming months.