Industrial prices are in the red again for July as the fell 0.4% year-to-year. This figure will haunt consumer prices for the next several months and feed fears of deflation, which will have a negative impact on growth and debt for Spain.
We should be vigilant about these prices, because transportation and distribution cost increases are the prime culprit. Unlike gas prices affecting the Consumer Price Index (CPI), there hasn't been a lot of wavering. Instead, industrial prices are stuck in negative figures. In this sense, the recent cries of consumer confidence from individuals and companies does not make sense. Sustained growth is the only way to raise prices.
