Spanish headline CPI retreats in December

The cost of living in Spain was little changed at the end of 2022, but headlines prices came off sharply in annual terms, even as core inflation picked up.

In harmonised terms, the headline Consumer Price Index edged up by 0.1% month-on-month, according to the country's national statistics agency (INE).

That pushed the year-on-year rate of increase down from 6.7% pace observed in November to 5.6%.

Economists at Barclays Research had forecast a rise in CPI of 0.1% over the month and 6.7% on the year.

It was a similar story in non-harmonised terms with the annual headline CPI rate retreating from 6.9% to 5.8%.

Core non-harmonised CPI on the other hand increased from 6.3% to 6.9%.

INE attributed the decline in headline CPI to the slower pace of increase for electricity prices versus one year back and a larger drop in fuel prices versus the same month of 2021.

Prices of clothing and footwear however fell by less than they did one year before while those for tobacco and processed foods rose.