GDP grows by 0,8% in the second quarter and accelerates its year-on-year growth by six-tenths, to 3,1%

The Spanish economy grew by 0,8% in the second quarter of the year, one-tenth less than in the previous quarter, thanks above all to household consumption, which grew at a quarterly rate of 1%, half a point above the previous quarter.

On an annual basis, Gross Domestic Product (GDP) grew by 3,1%, six-tenths more than in the first quarter of the year, the highest rate since the first quarter of last year, according to the preliminary data from National Accounting published this Friday by the National Institute of Statistics (INE).

Statistics has revised quarterly growth for the first quarter upwards by one-tenth to 0,9%, while lowering the interannual rate for the same period by one-tenth to 2,5%.

In the second quarter of the year, domestic demand contributed 2,4 points to the year-on-year GDP growth, while external demand contributed seven-tenths of a point. For its part, the quarterly GDP growth of 0,8% was also based on domestic demand, whose contribution was seven-tenths of a point, compared to the contribution of the external sector of one-tenth of a point.

The CPI fell by eight tenths in September, to 1,5%, due to lower prices for gasoline, food and electricity

The Consumer Price Index (CPI) fell by 0,6% in September compared to the previous month and reduced its year-on-year rate by eight-tenths, to 1,5%, its lowest figure since March 2021, when it stood at 1,3%, according to data released this Friday by the National Statistics Institute (INE).

The agency explained that the CPI's slowdown to 1,5% is due to the lower cost of fuel and, to a lesser extent, to the lower cost of food and electricity, compared to the rise experienced in September 2023. The leisure and culture group also had an influence, with prices falling more sharply than a year earlier.

With the year-on-year decline in the CPI in the ninth month of the year, inflation has now fallen for four consecutive months after the increases experienced in March, April and May, which led to the CPI climbing to 3,6%.

The INE includes in the advance data of the CPI an estimate of the underlying inflation (excluding unprocessed food and energy products), which in September moderated by three-tenths, to 2,4%, nine-tenths above the general rate and its lowest rate since January 2022.

On a monthly basis (September over August), the CPI fell by 0,6% compared to the previous month, in contrast to the stagnation recorded in August and the monthly increase of 0,2% in September 2023.