MADRID – Inflation is rocketing even more in Spain, reaching 10.2% in June. That is the highest level in 37 years, according to data provided by the statistics agency INE.
In April 1885 inflation was still 1.5 percentage points higher. Inflation is thus increasing for two consecutive months, after falling 1.5 points in April from March to 8.3%. In May inflation then rose to 8.7% and in June it crossed the feared double digits: 10.2%. This puts inflation in June four-tenths higher than its March peak of 9.8%, subject to confirmation by INE by the middle of next month.
According to the INE, the increase in the CPI above 10% is the result of price increases in fuels, food, and non-alcoholic drinks. The increased prices of hotels, cafes, and restaurants, more expensive than last year, also had an impact.
Underlying inflation in Spain
The INE includes in the preview of the CPI data an estimate of underlying inflation (excluding unprocessed food or energy products), which increased by six-tenths in June to 5.5%, the highest value since August 1993.
Every month, the June CPI rose 1.8% from May, one point higher than the previous month. The INE will publish the final June CPI data on July 13.
Government president Pedro Sánchez explained on Saturday that, thanks to the anti-crisis measures, he hopes to limit inflation to 3.5 percentage points. “If these measures were not implemented, that inflation would be 3.5 points higher than the current one. Then we would talk about inflation of almost 14 or 15 points.
Along the same lines, Sánchez considered that the rise in the CPI above 10% “demonstrates the seriousness of the situation of the European and Spanish economies”, and the “suitability” of the measures taken by the government to mitigate the impact of increased prices. on citizens’ pockets and the need to reform the electricity market in Europe.