Spanish CPI drops 0.9% in October, core prices edge higher

Spanish consumer prices fell less steeply in October as declines in the prices for telecommunications services and transport eased and were steady at the 'core' level.

The country’s consumer price index fell at a 0.7% year-on-year clip in October; that was two tenths of a percentage point higher than in the month before, according to Spain's statistics office.

Transport costs fell at a 5.7% clip, versus a fall of 6.4% in September, telecommunications costs slowed their price drop by more than a full percentage point, slipping buy just 0.5%.

However, the rate of increase in core consumer prices edged up by one tenth of a percentage point, with prices advancing by 0.9% year-on-year.

Versus September 2015, CPI was higher by 0.6%, led by gains in prices for clothing (11.1%) and food and non-alcoholic beverages (0.6%).

In harmonised terms CPI was down by -0.9% in comparison to a year ago, easing back from last month’s drop of -1.1%.

That was exactly as economists had forecast.