Title: Spain's 12-month inflation resumes upwards trend after April dip

May 30, 2022 04:25AM ET

By: AnalysisWatch

Spain's 12-month inflation returned to an upward trajectory in May after falling in April, as prices excluding energy and food rose at their fastest pace in 20 years, according to preliminary data from the National Statistics Institute (INE).

Spain's annual inflation accelerated to 8.7% in May from 8.3% in the previous month, the INE said. Twelve-month inflation reached 9.8% in March, the highest level since 1985.

Year-on-year inflation was higher than the 8.3% forecast by analysts polled by Reuters.

The economic fallout from Russia's invasion of Ukraine has fueled inflation around the world, particularly through rising energy and grain prices.

INE data showed that core inflation, which strips out volatile food and energy prices, rose to 4.9% year-on-year in May, a 26-year high, from 4.4% a month earlier, INE data showed.

Although electricity prices in Spain fell compared with a year ago, the INE attributed the rise in the inflation rate this month mainly to higher prices for fuel, food and soft drinks.

Spanish inflation, harmonised with the European Union, reached 8.5% in the 12 months to May, compared with 8.3% a month earlier.