Spain comes out of deflation in September

Spain moved out of deflation in September with the cost of transport services and for housing contributing the most to the rise in prices.

The rate of increase in the consumer price index for the euro area´s fourth largest economy rose by three tenths of a percentage point to a year-on-year pace of 0.2%, according to the country´s statistics office, INE.

Transport prices contributed the most to the push higher in CPI in annual terms, followed by a smaller rate of decline in house prices as well as in those for hotels and restaurants.

At the core level, which strips out the more volatile components such as food and energy prices advanced at a 0.8% year-on-year clip, down from the 0.9% rise observed in the prior month.

In harmonised terms, the headline CPI was flat year-on-year, versus a decline of 0.3% in August, and up by 0.7% month-on-month against August.

Economists had anticipated a gain of 0.1% over the year and 0.8% in monthly terms.