Prices are rising again due to the increased cost of electricity and transport

BarcelonaThe cost of living has risen again this October. Prices for consumer goods and services for families climbed once more after three months of decline, due to increased electricity and transportation costs, particularly rail and air travel, according to preliminary data from the Consumer Price Index (CPI, the indicator that measures the cost of living) released this Thursday by the National Statistics Institute (INE). This month, prices rose by an average of 0.7% compared to September, a figure that contrasts with the 0.3% drop between September and August. In the two previous months, prices also remained stagnant, with monthly rates of 0% in August and -0.1% in July, although prices typically increase during the summer months due to the rise in consumption associated with holiday periods.

Similarly, if prices are compared with those of the same month last year, the annual inflation rate this October stood at 3.1%. one tenth higher than that recorded in September, and has now risen for five consecutive months. In a statement to the media, the Ministry of Economy said that the data is "in line" with last month's figures. With these figures, the annual increase in the CPI in Spain is moving further away from the 2% annual target set by the European Central Bank in the medium and long term, although the data is much more normalized after the episodes of high inflation recorded in 2021 and 2022 with the reactivation of the Ukrainian economy. In fact, in the last two years, both in the summer of 2024 and this past spring, the CPI in Spain reached levels close to or even below the 2% target set by the ECB.

Electricity, more expensive

According to the INE (National Institute of Statistics), the increase in the price of electricity and rail and air transport are the two items among the products included in the CPI (Consumer Price Index) calculation that contributed most to the rise in inflation when comparing prices with those of a year ago. Conversely, at the other extreme are fuels, especially gasoline, whose price has fallen compared to October 2024. A year ago, geopolitical tensions in the Middle East stemming from the war in Gaza had caused the price of oil and, by extension, fuels to rise, but in recent months prices...

It is also noteworthy that food, which for many months was the main driver of price increases, is no longer among the items that most significantly impact the upward cost of living, which is good news for most households, especially those with lower incomes, who must allocate a larger proportion of their budget to food, or water. However, in this respect, the increase in electricity prices does have a negative impact on the poorest households.

As for core inflation – which excludes energy and fresh food, which are more volatile – it has risen by one-tenth of a percentage point compared to the September rate, reaching 2.5% annually. This marks the fifth consecutive month of growth below that of the overall CPI.

The figures published this Thursday by the INE (National Statistics Institute) are a first preview. On November 14, the statistical institution will publish the expanded data, broken down by autonomous communities.