Inflation weakened again in December. The Consumer Price Index (CPI) is at 2.9% year-on-yeara tenth less than in November, according to the leading indicator published on Tuesday by the National Statistics Institute (INE). The development is mainly due to the decline in fuel prices, although food at the same time exerted upward pressure Core inflation stayed in the 2.6%.
The deceleration recorded in December came after inflation reached 3.1% in October and fell to 3.0% in November. With the December data, the annual rate falls by a tenth and stands at 2.9% at the end of the year.
In monthly terms this is Consumer prices recorded in December a 0.3% increase compared to the month of November, according to preliminary CPI data provided by the INE. This fluctuation is lower than in December 2024, when the increase was 0.5%, contributing to the reduction in the interim annual rate.
According to the INE, the development of inflation in December is mainly due to the following factors falling fuel prices and lubricants for personal vehicles, compared to the increase in the same month last year.
Also influential, although to a lesser extent, were the prices of leisure and culture, which rose in December, but less than in December 2024. This behavior also contributed to the weakening of the overall index.
On the contrary, that Food and non-alcoholic drinks The annual CPI rate had an upward impact as its prices rose more than in the same month last year, the statistics office revealed.
The INE’s leading indicator shows the underlying inflation – which Unprocessed foods and energy products are excluded– remained at 2.6% year-on-year in December, the same level as in November.
This index component reflects price movements without taking into account the most volatile elements and its stability contrasts with the slight decline recorded by the overall index in the last month of the year.
In parallel, the INE published the progress of the Harmonized Index of Consumer Prices (IPCA), which allows a comparison of price developments between the countries of the European Union. In December, the IPCA’s estimated annual rate of variation fell by two-tenths is 3.0%.
The IPCA’s underlying inflation reached 2.8%, while the estimated monthly fluctuation of the harmonized index was 0.3%, in line with the evolution of the national CPI.
In addition to the December data, the Ministry of Economic Affairs has made a first reading for the full year. According to the SER chainthe department headed by Carlos Cuerpo estimates that the Average inflation in 2025 will be 2.7%a tenth less than in 2024. The ministry points out that this price development would allow families to further regain their purchasing power.
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