Gonzalo Bernardos explains why May CPI data is not ‘bad’ despite rising prices

inflation rises again until it reaches 3.6% in May, three tenths more than in April. This is reflected in the Consumer Price Index (CPI) data released this Thursday by the National Institute of Statistics.INE), What confirm preliminary data and connects this rebound with growth electricity prices and at the slightest drop in fuel.

“It’s not what it seems. Inflation for a month depends on how much the consumer price index rose in May and how much it rose in the same month in 2023. In 2023 she behaved very well, did not get up at all. So this month it grew by 0.3%, which took us from 3.3% to 3.6%,” explained Gonzalo Bernardos.

That is, the growth that was observed in May 2024 does not cause much concern. Moreover, the professor explains that it was the second month of May that rose the least, and this is the most striking fact. That’s why, The data looks bad, but it really isn’t..

As for June, there is a chance that restaurant and hotel prices will rise ahead of the summer months; however, In June 2023, inflation was 0.6%.. So Bernardos concludes that although the data are mediocre “in July 2024, inflation next month will be lower than the current one”.