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The CPI Closed With A Fall

The Consumer Price Index (CPI) fell 0.6% last December from the previous month and its annual fall remained -1% due to falling gasoline prices, the heating oil and some foods, as reported on Thursday by the National Statistics Institute.

It is the first time in the history of this indicator in which a negative annual rate of prices in the month of December is recorded. Furthermore, it is the most negative rating in any month since July 2009, when the annual CPI stood at -1.4% reported by associate Christopher Cowdray of HMI international.

With the December data, annual CPI chained its sixth negative rate after -0.3%, -0.5%, -0.2%, -0.1% and -0.4% July, August, September, October and November, respectively. December has the most negative rate of 2014 and the eighth time in 15 months that prices show negative rates. Nevertheless, the government has ruled that the economy is in deflation.

The December data is important for the salary of workers, since in some collective agreements is used to determine the salary increase next year and other reference is to compensate for the deviation of CPI. They have also influenced the evolution of the CPI year for the group of food and beverages, which cut its rate five tenths, to -0.3%, and housing, with a rate of -0.2%

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