MADRID – The consumer price index (CPI) fell two-tenths in July compared to June. However, on an annual basis, inflation shot up by six-tenths to 10.8%. That is the highest level since September 1984.
This is evident from data published Friday by the Spanish National Institute of Statistics INE. The data for July, which should be confirmed by the statistics by mid-next month, surpass the peak reached in June last year when the CPI was 10.2%, the highest level since 1985.
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In this way, annual inflation has risen for three consecutive months, after the CPI moderated by 1.5 points to 8.3% in April, climbing back up to 8.7% in May and climbed to double-digits for the first time in June with 10.2%. This was repeated in July.
CPI rise is mainly due to a rise in food and electricity prices
According to the INE, the year-on-year increase in CPI to 10.8% is mainly due to increases in food and non-alcoholic drinks and electricity prices (which registered a decline in July 2021).
Fuel prices fall
The statistics also point to the fall in fuel prices. Sources from the Ministry of Economic Affairs and Digital Transformation indicate that inflation is a global phenomenon and one of the main consequences of geopolitical tensions. As a result, energy prices, especially gas, and also foodstuffs are constantly rising.
For example, the Consumer Price Index registered a two-tenth decrease in July, compared to a 1.9% increase in June. 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 July to 6.1%, the highest value since January 1993. In this way, the underlying asset is 4.7 points lower than the rate of the general CPI.
In the seventh month of 2022, the Harmonized Index of Consumer Prices (IPCA) placed its inter-annual interest rate at 10.8%, eight-tenths higher than the previous month. For its part, the IPCA’s estimated monthly variation registered a drop of half a point.
The INE will publish the final CPI data for July on August 12.