The Competitiveness Guarantee Index (IGC) recorded in July an annual variation of -0.33%, which represents a moderation of the decline noted in the previous month, when it stood at -0.76%.
With this new drop, the indicator now totals 19 consecutive months in negative territory, according to data released this Friday by the National Institute of Statistics (INE), the body responsible for its calculation and monthly publication.
The IGC sets a price update rate aligned with the improvement of competitiveness against the countries of the euro zone.
This rate corresponds to that of the Harmonized Consumer Price Index (IPCA) of the Economic and Monetary Union (UEM) minus a fraction of the competitiveness loss accumulated by Spain since 1999.
When the variation rate of the index is below 0%, that value is adopted as a reference, which implies the application of the no revision rule.
On the contrary, when the index variation exceeds the medium-term annual inflation target of the European Central Bank, set at 2%, this threshold is taken as a reference. This ensures that contracts linked to the IGC contribute to preserving the competitiveness of the Spanish economy in the medium term.
The IGC started 2024 at 0.17% and then moved to negative values, with only two months in positive, July and December, marking its largest decline of 2024 in September, with -0.45%. At the beginning of 2025, it returned to negative rates, chaining declines in the twelve months of the fiscal year, and in 2026 it has already accumulated seven consecutive months of declines.