Prices remain flat in May, keeping inflation below 2%.

BarcelonaPrices for consumer goods and services have remained largely unchanged this May. This has led to the consumer price index (CPI, the indicator that measures the cost of living for households) recording annual growth this month below the 2% maximum target set by the European Central Bank (ECB). Thus, this month the CPI has not registered, on average, any increase compared to April, and will therefore close the month with a 0% increase. This is due to the lower cost of leisure and tourism services, and to a lesser extent, transportation. Another factor has been the rise in electricity prices this month, but at a slower rate than a year ago.

In April, the CPI already closed with an annual increase of 2.1%, slightly higher than the central bank's target, but on a monthly basis it registered a notable increase of 0.6% both in Catalonia and across the country. However, it should be noted that last month coincided with Easter, a period that typically sees price increases due to increased household consumption and the arrival of more foreign tourists taking advantage of the holidays. This fact would also explain the reduction in the prices of tourist goods, as they are readjusted after the previous month's increase.

After approximately a decade of very low inflation (some years it had even been negative) since the 2008 financial crisis and until the outbreak of the pandemic, Europe suffered a new bout of inflation in 2022, when the Russian invasion of Ukraine caused annual growth rates above 10% at some points in Spain. However, since the summer of 2022, prices have moderated their increases and inflation has returned to its lowest levels. However, until now, only in September and October 2024 have rates been recorded below the 2% mandated by the ECB.

The government boasts about the data

In response to the data, the Spanish government has boasted about the slowdown in prices, combined with strong economic growth and job creation. "The Spanish economy continues to show a great capacity to combine a sustained reduction in inflation with one of the highest growth rates among developed countries, especially relevant in the current context of heightened international uncertainty," the Ministry of Economy said in a statement to the media.

This Friday's data is a first preview. The INE will publish its final figures on June 13, when it will also break them down by autonomous community and detail which products are becoming more and more expensive.