Spain: Inflation soars to 10.8%, its highest level since 1984

Spain’s consumer price index (CPI) fell two ticks in July from the previous month, but its year-on-year rate rose six ticks to 10.8%, its highest level since September 1984.

According to data released this Friday by the National Institute of Statistics (INE), the July figure, which should be confirmed by statistics in the middle of next month, exceeds the peak reached last June, when the CPI fell. stood at 10.2%, its highest level since 1985.

Thus, it has now been three consecutive months that inflation has increased year on year, after having moderated by 1.5 points in April to reach 8.3%. Then in May it climbed to 8.7% and in June it exceeded double digits (10.2%), as well as in July.

The year-on-year increase in the CPI to 10.8% was mainly due to higher prices for food and non-alcoholic beverages and electricity (which fell in July 2021) and the performance of the clothing and shoes, whose prices have fallen less than last year, specifies the INE, which also highlights, although in the opposite direction, the drop in fuel prices.

Sources from the Ministry of Economic Affairs and Digital Transformation point out that inflation is a global phenomenon and one of the main consequences of geopolitical tensions, which produce a continuous increase in energy prices, especially gas, but also food.

On a monthly basis, the consumer price index registered a fall of two tenths of a percentage point in July, compared to the 1.9% rise recorded in June.

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