The CPI rises four tenths in March to 3.2%

This is clear from the data published today by the National Institute of Statistics (INE), which also shows that, with the increase in the interannual CPI in the third month of the year, inflation is once again registering increases after the decline of six tenths that it experienced in February and which brought inflation to 2.8%, its lowest level since August 2023.

The rebound in March also returns the CPI to rates above 3% after having fallen below that level last month when it had then been above that percentage for five consecutive months.

According to the INE, the increase is mainly due to the increase in electricity and fuel prices, compared to the decrease in March 2023.

In the opposite direction, the prices of food and non-alcoholic beverages stand out, whose prices rose less than in the same month of the previous year.

For its part, core inflation (without unprocessed food or energy products) fell two tenths in March, to 3.3%, a rate one tenth higher than the general CPI.

The Ministry of Economy, Commerce and Business highlighted that this is a "slight" increase in the CPI in March that is due to the normalization of the tax rate for electricity as a consequence of the drop in its price in the month of February, after almost three years with reduced VAT (since June 2021). Meanwhile, they stressed that food prices "continued to moderate in March, continuing the trend of recent months." Regarding underlying inflation, they highlighted that it is the lowest rate in the last two years.

In monthly terms (March over February), the CPI advanced eight tenths, registering its third consecutive monthly increase and the most pronounced since February 2023, when it rose 0.9%.

In the month of March, the estimated annual variation rate of the Harmonized Consumer Price Index (HICP) stands at 3.2%, three tenths above that registered the previous month. For its part, the estimated monthly variation of the IPCA is 1.3%.

The INE will publish the final CPI data for March on April 12.

The INE has also published today the figures for retail trade, which registered an increase in sales of 4.8% in February compared to the same month in 2023, expanding by 2.5 points the year-on-year advance experienced in January.

With the rebound in February, the most pronounced since April 2022, retail trade turnover has chained 15 consecutive months of year-on-year increases.

Eliminating seasonal and calendar effects, retail trade turnover increased by 1.9% in the second month of the year, a rate 1.4 points higher than that of January.

In monthly rate (February over January) and eliminating the seasonal and calendar effect, retail sales rose by 0.5%, in contrast to the 0.4% decrease experienced in the first month of the year.

Regarding employment, retail trade increased its employment by 2.1% in February compared to the same month in 2023, a rate two tenths higher than that of January. With the advance in February, employment in retail trade has chained 34 months of consecutive year-on-year increases.