Households have once again seen how the shopping basket became more expensive in the month of October. Food rose this month to 1.9%, one tenth more than the previous month. Its rise is a consequence of the increase in food, after almost two years of a 0% tax credit. Since October 1, the Government has begun to reinstate the consumption tax on basic products in the shopping basket. This recovery of VAT has had a direct impact on the increase in prices of eggs, rice and oil, which had remained relatively stable during the year. For example, fresh legumes and vegetables, which in September showed a 3.8% drop in their year-on-year price, increased 1.6% in October. Whole milk went from a 0.5% drop to a 0.7% increase, while products such as eggs, cheese and rice saw an increase close to 2%, compared to increases of less than 1% for previous months.
This increase in food prices has affected the Consumer Price Index (CPI), which represents an increase of three tenths compared to the previous month, according to the final data published this Thursday by the National Institute of Statistics (INE). ). This rebound is mainly attributed to the increase in fuel prices and the rise in electricity and gas prices, in contrast to the falls recorded in October 2023. Regarding underlying inflation, which excludes unprocessed foods and products energy, advanced one tenth in October, to 2.5%, placing it seven tenths above the general rate.
With this year-on-year advance, inflation resumes its upward trend after four consecutive months of declines. Despite this rebound, the Ministry of Economy emphasizes that inflation remains below the 2% objective established by the European Central Bank (ECB).
In detail, the housing group experienced an increase of 1.3 points in its interannual rate, reaching 4.2%, due to the increase in the costs of electricity and gas. For its part, the transport group recorded an improvement of nine tenths in its interannual rate, standing at -3%, as a result of the increase in the prices of fuels and lubricants for vehicles.
In monthly terms, the CPI increased 0.6% in October compared to September, its largest monthly increase since April, when it rose 0.7%. This increase is mainly due to the increase in prices in the clothing and footwear group, which rose by 8.5% due to the start of the autumn-winter season, as well as the rise in food prices, which rose by 1.4%. due to the increase in the prices of fruits and vegetables.
Finally, the Harmonized Consumer Price Index (IPCA) registered an increase of one tenth in October, also standing at 1.8%, with a monthly increase of 0.4%.
