Fri, 10 Jul 2020

COVID-19 pandemic pushes prices down in Spain

Xinhua
29 May 2020, 02:51 GMT+10

Workers paint a line on the street to adapt the mobility of pedestrians and ensure social distancing in Barcelona, Spain, May 19, 2020. (Barcelona City Hall/Handout via Xinhua)

Although prices in May remained stable compared with April, the coronavirus crisis has led to the steepest fall in prices on a year-on-year basis since 2016.

MADRID, May 28 (Xinhua) -- Spain's consumer price index (CPI), a main gauge of inflation, fell one percent in May year-on-year, according to preliminary inflation data published by the Spanish Statistical Office (INE) on Thursday.

Although prices in May remained stable compared with April, the coronavirus crisis has led to the steepest fall in prices on a year-on-year basis since 2016. Meanwhile, the prices of everyday items have increased.

The INE explains that due to the ongoing health emergency, it has created two distinct groups of products.

Operators modify the circulation of vehicles to widen the sidewalks and ensure social distancing on pedestrians in Barcelona, Spain, May 19, 2020. (Barcelona City Hall/Handout via Xinhua)

The first contains household items, such as food and drink, cleaning products, pharmaceuticals and personal hygiene products.

The average price of these goods increased by 2.8 percent compared with May 2019, although prices dropped slightly when compared with April of this year.

However, the prices of products and services in the second group, which include rents for homes and garages, fuel, energy and heating, mobile phone and streaming services, fell by 4.2 percent year-on-year as varying degrees of lockdown restrictions continue to affect the country. ■

Sign up for Spain News

a daily newsletter full of things to discuss over drinks.and the great thing is that it's on the house!