Inflation in Spain shoots to highest percentage in 29 years

by Lorraine Williamson
inflation in Spain

MADRID – The consumer price index (CPI) rose in October due to rising electricity costs by 2% compared to September. And it even reached 5.5% year-on-year, which is 1.5 points higher than the year-on-year price in September. Furthermore, inflation in Spain is at the highest level in 29 years. 

The CPI rose to 4% in September as a result of the price increases for electricity, gas and petrol. With the October data, the highest since September 1992, the inter-year CPI is positive for the tenth consecutive time, according to data released Thursday by the National Institute of Statistics (INE). 

According to INE, in the annual behaviour of the CPI, the increase in electricity prices stands out. This is higher this month than in September last year. 

Also of influence, albeit to a lesser extent, is the increase in the prices of personal vehicle fuels and gas, compared to the decreases recorded last year. 

Cogesa Expats

INE includes an estimate of core inflation (excluding unprocessed foods or energy products) in its progress in CPI data. This rose four-tenths to 1.4% in October, which is more than four points lower than the overall CPI percentage. This is the highest difference between the two rates since the start of the series in 1986. 

 The largest monthly increase in CPI in almost 36 years 

In monthly terms, the CPI recorded its third consecutive rally, rising 2% in September, 1.2 points more than in July, and the largest monthly increase in nearly 36 years, particularly since January 1986. 

Unfavourable price difference versus euro area 

Annual inflation in the euro area stood at 4.1% in October, seven-tenths above the price increase observed in September and the highest since July 2008, according to Eurostat’s estimate. Despite the increase, inflation in the euro area remains far from the CPI in Spain, which stood at 5.5% in the tenth month of the year, implying an unfavourable price differential vis-à-vis the euro area of ​​1.4 percentage points. 

INE will publish the final CPI data for October on November 12. 

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