Driven above all by the energy pricesinflation, which had not stopped since April, has been above 10% since June, a level not seen since the mid-eighties in Spain, a phenomenon, however, shared in the rest of the Europe.
According to the INE, the slowdown “is mainly due to the drop in fuel prices.” “On the contrary, the increase in prices, among others, of the electricity, feedingrestoration and tourist packages”, added the statistical entity.
The estimated annual variation rate of the Underlying inflation, which does not take into account unprocessed foods or energy products, increased, however, three tenths, to 6.4%. If this first estimate is confirmed, it would be the highest since January 1993.
Spain, like all European countries, has been facing an upturn in inflation for several months related to the tensions caused by the reactivation of economic activity after the pandemic Covid-19 and the ukrainian war.
“We are already on a downward path”, predicted the Minister of Economy, Nadia Calvino, in statements to public television TVE. Still, he called for “prudence” because “the uncertainty is very high as a result of the war” in Ukraine.
This inflation, initially concentrated in electricity and fuels, spread to all sectors of activity, especially food, with serious consequences for the purchasing power of households.
According to the Spanish government, inflation is expected to decline slightly in the second half of the year, although it will continue to be high, with an average level of 7.8% forecast for 2022.
In recent months, the executive has increased the number of aid plans to try to offset the effects of inflation on households and businesses, notably with fuel and transport subsidies and electricity tax cuts.
Source: Ambito
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