Reference variables for analysing inflation in Spain

Abstract

This note analyses the main reasons why the Directorate General Economics, Statistics and Research of the Banco de España has recently adopted the Harmonised Index of Consumer Prices (HICP) and its associated measure of core inflation (the HICP excluding energy and food) as its reference variables for analysing inflation in Spain, instead of its previous practice of focusing on the consumer price index (CPI) and the CPI excluding unprocessed food and energy. The advantages in terms of communication and consistency with the other euro area countries and the European Central Bank (ECB) make it advisable to base the regular analysis of price developments on the harmonised measures. In any case, the CPI will continue to be analysed regularly, given its more extensive regional coverage and longer time series