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Inflation rises in July to 2.4% and changes the declining trend of the previous two months

The annual inflation rate of the Valencian Community increased half a point in July standing at 2.4%, a figure one tenth higher than that of Spain. This marks a turning point with respect to the previous two months of decline. The same occurred with core inflation, which also recorded an increase of two tenths to 6.3%, as opposed to a downward trend experienced in the last four months.

If the estimated CPI figure for August is confirmed, the annual inflation in Spain would stand at 2.6%, which would represent a further increase of three tenths of a percentage point. On the other hand, the advance figure for core inflation decreases by one tenth of a percentage point to 6.1%.

Of the 12 categories of goods and services included in the Consumer Price Index (CPI), Food and non-alcoholic beverages continues as the group with the highest annual inflation rate standing at 10,5%, 0,6 percentage points higher than in June. Despite being the group under the greatest stress, it remains below the national average (10.8%).

Since annual inflation exceeded the 3% threshold in August 2021, exactly two years later, the accumulated increase in the CPI in July was 13% in the Valencian Community, 2 tenths of a percentage point higher than the national average.

Of the 41 subgroups into which the CPI is divided, in the Valencia Region the year-on-year rate is above 10% in 5 categories: Tourist Packages (26.8%, similar to Spain); Non-alcoholic Beverages (10.9% vs. 11.6% in Spain), Accommodation Services (10.9% vs. 9.3%), Food (10.4% vs. 10.8%) and Alcoholic Beverages (10% vs. 9%).

The greatest amount of data made available by autonomous communities is displayed at the level of headings, which are divided into 56 categories. In the Valencian Community, four of these headings have had an annual inflation rate higher than 15%: Sugar (41.1%), Oils and fats (19.8%), Milk (17.6%) and Pork (16.1%). As for the monthly variation experienced between June and July, the changes in prices that stand out are an increase of 10% in fresh fruit, 2.6% in tourism and hotel and catering, as well as a 17.1% drop in children’s and babies’ clothing and 11% in women’s clothing.

The Price Bulletin of the Valencian Community, prepared by the Ivie, is included in the Price-Monitoring Observatory of the Valencian Region. In addition to these brief monthly reports, the project comprises a database with a system of indicators based on comprehensive data from the CPI, which is completed with other price indexes in different areas such as Industry, Housing, Urban land, Commerce and Tourism. It contains data for the Valencian Community, the rest of the regions and Spain and is updated monthly.