2024/Q3 Article 08. Regional heterogeneity in recent inflation developments in Spain

2024/Q3 Article 08. Regional heterogeneity in recent inflation developments in Spain

Series: Economic Bulletin.

Author: Alejandro Fernández Cerezo, Matías Pacce and Isabel Sánchez

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2024/Q3 Article 08. Regional heterogeneity in recent inflation developments in Spain (564 KB)

Abstract

Rationale

Inflation has recently performed heterogeneously across Spain’s different regions. This article provides a detailed analysis of such heterogeneity and looks at some of its main determinants.

Takeaways

  • Between June 2019 and June 2024, cumulative inflation for the Spanish economy as a whole amountedto 18.9%.
  • Cumulative inflation has varied appreciably across regions. Castile-La Mancha and Galicia were theregions with the highest cumulative inflation in this period (21.2% and 20.4%, respectively), whileMadrid and Catalonia recorded the lowest relative price rises (17.1% and 18.1%, respectively).
  • Heterogeneity in regional inflation rates, something that is also seen in other European countries, hasessentially reflected the cross-regional differences in the composition of household consumptionbaskets.
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