The Consumer Price Index (CPI) down 0.5% in January compared to the previous month and cut its yoy rate up to 6%, five tenths below the December rate (6.5%), due to the cheapening of light. With the January data, the IPC interanual It chains its thirteenth consecutive positive rate, according to advanced data published this Monday by the National Statistics Institute (INE), which is released today for the first time in the new 2021 base.
According to Statistics, in the interannual behavior of the CPI for January, the drop in electricity prices stands out, compared to the rise they registered in January 2021. The INE incorporates in the advance data of the CPI an estimate of the Underlying inflation (excluding unprocessed food and energy products), which increased three tenths in January, to 2.4%, which is more than three points below the general CPI rate.
In monthly rate, the CPI ends five months of promotions registering a decrease of 0.5% in January compared to December 2021, its biggest drop since last July. In the first month of 2022, the Harmonized Consumer Price Index (IPCA) placed its interannual rate at 6.1%, five tenths less than in December. For his part, the leading indicator of the IPCA fell by 0.9% in the monthly rate. The INE will publish the final CPI data for January in mid-February.
Statistics has highlighted that with the implementation of the new base are incorporated methodological novelties that improve the accuracy of the indicator, as well as changes in the composition of the shopping basket and a new weighting structure. The change of base is a process that is carried out every five years to renew the CPI by adapting it to changes in household consumption patterns and incorporating methodological improvements.
Changes in data processing
Thus, the 2021 base CPI incorporates new treatments for monitoring clothing prices and for processing missing prices, and updates the list of subclasses, so that 24 subclasses disappear from the CPI calculation and two new ones are incorporated. The most notable changes in the configuration of the basket are the incorporation of hygienic masks and the subscription to the ‘online’ press.
from the basket disappear items such as the image player, the portable player or the compact-disc and the DVD, among others. As a result of these adjustments, the CPI base 2021 shopping basket now has 955 items (of which 462 are traditionally collected and the rest are collected through ‘scanner data’), compared to 977 in the previous base ( with 480 traditional pickup).
The 2021 base CPI includes a new weighting structure that more accurately represents the consumption patterns of households, according to the INE. Statistics has postponed the incorporation of the liberalized electricity market in the calculation of the CPI until the information that the electricity companies have to supply with a sufficient level of detail and with the necessary technical criteria is obtained.