Electricity prices have moderated in the first month of the year and inflation is down 0.5 points compared to the previous month. According to advanced data this Monday by the National Institute of Statistics (INE), the annual rate stands at 6%. It is the first fall of the index in ten months. The monthly rate of the CPI also fell to -0.5%, compared to 1.2% in the previous month. However, core inflation, whose index does not include unprocessed food or energy products, continues to rise and reaches 2.4%, its highest level since October 2012.
Economists assume prices will continue to rise through the first half of this year, only to begin to decline once supply chains return to normal and energy demand moderates and so do energy prices. Both the European Central Bank (ECB) and the Bank of Spain and other institutions have warned that inflation could last longer than initially expected.