Spain

The inflation falls to minimum of 16 months

The inflation was reduced in January half a point until 0.6%, minimum from Sep-16, thanks to some foodstuffs' behaviour (fruits, legumes and vegetables) and, above all, to the abaratamiento of the electricity. Given that this decrease has been produced in the components more volatile, the underlying one remains in minimum from finals of 2016 (0.8%); furthermore, the fall has been more intense that in the EMU, in such a way that the negative differential is expanded until-0.6 points. On the other hand, sales of the large businesses closed 2017 with a growth of 4%, higher than that one of the previous year (+2.5%), boosted, above all, for the exports, that they grew to the great rhythm from 2010 (+7.6% vs +2.9% the domestic sales).

Lastly, the sales of houses grew in 2017 for the fourth consecutive year, 14.6% until 464,423, the higher level in nine years, exceeding the initial predictions. This way, the accumulated growth from minimum is of 57.4%, although it is still 40% under the levels of 2007.

 

Lastly, in line with the dynamism of the activity, last year continued falling (-4.7%) the number of companies competed until 4,095, minimum from 2008, but still higher than the levels pre-crisis (lower than 1,000 annual in 2005-2007).

Source: Bankia Studies