The National Institute of Statistics (INE) today confirms the data advanced on March 30 and leaves the interannual rate of the CPI, the main indicator of inflation, at 3.3%, 2.7 points below that of February to minimums since August 2021. It is also the largest drop in a month in the year-on-year inflation rate since May 1977.

This abrupt drop in inflation is due to the base effect: in March 2022 there was an abrupt increase in electricity and food prices after the invasion of Ukraine by Russia, which translates into the statistical comparison with this year.

Core inflation, which does not include the more volatile evolution of unprocessed food or energy products, is also confirmed at 7.5%, barely one tenth compared to the interannual data for February, with a difference of 4.2 points with the general CPI, the highest since August 1986, when it began to be calculated.

Compared to February, the CPI rises 04% in one month, while the Harmonized Consumer Price Index (IPCA), which is used as a reference to compile European statistics, places its annual rate at 3.1%, almost

three less points.

Inflation began to rise in January of last year, when it stood at 6.1%, and reached its maximum in July with 10.8%, mainly due to the rise in energy prices, which has been transferred to the other components, especially food. Since November, the annual inflation rate has been around 6% and the subjacent rate at 7%, although food inflation doubles these percentages.

The consumer group that has had the greatest influence on the decrease in the annual rate of the CPI for March has been that of housing (expenses associated with housing, not the price of housing itself, whose main component is the utility bill). light The housing group fell 10 points (-16.2%) pushed down by electricity and to a lesser extent, diesel for heating, compared to March last year when energy rose suddenly.

In second place, the group of transport prices stands out, which places its rate at -4.8%, more than six and a half points less than last year, also due to cheaper fuels and lubricants for personal vehicles, which increased in March 2022.

They are followed by clothing and footwear, with a rate of 3.2%, seven tenths less, and in fourth place, is food and non-alcoholic beverages, with a rate of 16.5%, one tenth below that of the month former. Although the shopping basket becomes more expensive for another month in the interannual rate, it does so much less than last year at this time. In March, fish and shellfish, milk, cheese and eggs, and oils and fats rose above all. In contrast, legumes, vegetables and other food products became more expensive last month than in March 2022.

The prices of leisure and culture, on the other hand, have risen in the CPI with a rise of 4.4% due to the increase in the prices of tourist packages compared to the decrease registered in March 2022.

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