The rise in prices continues to decline this month as the year-on-year inflation rate stands at 9%, according to advance data published today by the National Institute of Statistics (INE). Thus, the Consumer Price Index (CPI) was 1.5 points lower than that registered in August, 10.5%.
The decrease is attributed above all to cheaper electricity, in contrast to the evolution that this component had last August. Also having an influence, although to a lesser extent, was the drop in fuel prices and the drop in the price of transport, coinciding with the start-up of free season tickets for suburban and medium-distance trains.
The rise in rates, the new measures to contain prices and the change in consumer habits, more inclined to save, are beginning to have an effect. In this sense, the Ministry of Economic Affairs predicts that "despite the tensions in the energy markets, the downward trend in inflation will continue in the coming months" as long as there are no changes in events.
In monthly terms, prices have fallen six tenths in September compared to August, while core inflation -which does not take into account energy products or unprocessed food- has fallen two tenths, to 6.2%.
The determination of the central banks to combat the rise in prices has materialized in an increase in interest rates of 1.25% since last July, thus putting an end to the zero rate policy that has prevailed in the last six years. The decision is making loans more expensive and increasing the profitability of deposits, with the consequent consequences on consumption and savings.
From the Government they point out that the reduction in inflation "shows the positive impact of the measures put in place to cushion the rise in prices, especially those aimed at promoting public transport."