The annual increase was the smallest since January. Excluding food and energy prices, so-called core inflation increased by 6.3% in the last 12 months and 0.3% since September.
In October, the CPI marked an increase of 7.7% year-on-year compared to 8.2% in September and 8% expected by analysts. Looking at the underlying reading -excluding the ever more volatile prices of energy and fresh food-, the dynamic is repeated: the underlying interannual index goes from 6.6% to 6.3% (the consensus pointed to 6.5%) and the monthly from 0.6% to 0.3% (it was pointed to 0.5%).
The underlying inflation indicator is what generated the greatest optimism since the focus is on this index to observe the dynamics of inflation.
What increased the most?
Energy stands out again as the item that increased the most (1.8% in October) after three months of decline, with a 4% increase in diesel. But the significant decline in used vehicles (-2.4%) helped lower the overall figure.
Housing presents an advance of 0.8% above the previous months but medical care services fell (-0.6%) and food retracted the rise to 0.6% – compared to 0.8% the previous month .