How is inflation measured in Spain?
The most commonly used inflation index is the Consumer Price Index (CPI). The CPI measures average price changes in a basket of representative goods and services. The Consumer Price Index takes a base year, which is assigned a value of 100, and compares the other prices against it. If the CPI is above 100 in a given year, it means that prices rose (inflation), whereas if it falls below 100, prices fell (deflation).In Spain, the institution in charge of calculating the CPI is the National Statistics Institute (INE). According to this source, "the index is made based on 220,000 prices of 479 items, belonging to groups that range from clothing to transport and housing".
