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The index that measures inflation in an economy captures changes in the price of the products included in the representative consumption basket of the average household. Analysis of how these prices move at individual product level can therefore help understand inflation developments at any given time.

In Spain, as in many other countries, the year-on-year inflation rate began to rise in 2021 from the moderate levels observed in previous years. The year-on-year rate of change in the consumer price index (CPI) rose from around 0% in early 2021 to 6.5% in December 2021, its highest value in decades. 1 Inflation continued to climb in 2022, holding at around 10% during the summer of that year, and then fell continuously to levels closer to the historical average.