Inflation climbs to 4.9% in September due to the fuel hit

The energy shock caused by the war in Iran continues to push prices up. The Consumer Price Index (CPI) rose six tenths in September to reach a rate of 4.9%, which is the highest figure recorded since February 2023.

According to the Ministry of Economy, this rise is mainly due to the increase in fuel prices due to the energy shock derived from the war in Iran, together with a base effect due to the drop that fuel prices had experienced in September of last year.

To contain this increase at the pumps, the Government will maintain the tax reduction of 20 cents per liter on gasoline and diesel as of November 1, a measure within the aid package for families and companies that the Permanent Deputation of Congress plans to validate this week.

On the contrary, in the light sector, electricity inflation stood at 11.4% annually. By remaining below the 15% threshold necessary to activate automatic discounts, no reductions in VAT or the Special Tax on Electricity will be applied, although the limit on the increase in the Last Resort Rate (TUR) for natural gas remains fixed.

As for the rest of the economy, core inflation - which does not take into account energy costs or fresh food - increased two tenths to 3.1% year-on-year. In the transport group, prices increased by 10.5% annually for fuel and plane tickets.

Likewise, with the start of the fall and winter season, the clothing and footwear sector rose 6.9% in the month, while housing rose 1.1% monthly, driven by electricity and liquid fuels. In the shopping basket, food and non-alcoholic beverages registered an annual inflation of 2.7%, although their accumulated variation since the outbreak of the conflict in the Middle East remains in negative territory, with -0.4%.