Title: Spanish core inflation at its highest since 1995, INE says

Jun 10, 2022 04:50AM ET

By: AnalysisWatch

Consumer prices in Spain went up 8.7% year/year in May, up from 8.3% in April. Core inflation git to its greatest level since 1995, official data showed Friday.

The data from the National Bureau of Statistics assured a preliminary report released late last month.

According to the data, fuel prices rose 15 percent year-on-year and prices for food and non-alcoholic beverages such as fruit, bread and meat touched the highest level in Spain in 28 years, with an annual rise of 11 percent.

According to Statistics Spain, core inflation, excluding food and energy prices, which are subject to fluctuations, was 4.9 percent year-on-year, the highest level since 1995, up from 4.4 percent in April.

Lower energy prices brought Spanish inflation down from a 40-year high of 9.8% in March to 8.3% in April, but prices rose again in May.

The economic fallout from Russia's invasion of Ukraine has caused inflation to rise sharply worldwide since February 24, although the Spanish government expects it to ease in coming months.

The European Central Bank on Thursday ended long-term stimulus measures and announced it would raise interest rates next month for the first time since 2011, which could be followed by a bigger move in September.

"We expect prices to return to more normal levels next year, with a rapid slowdown in the second half of the year," Economy Minister Nadia Calvino told Spanish regional TVG.

Spanish prices, harmonized within the European Union, rose 8.5 percent from a year earlier, up from 8.3 percent in April and in line with Reuters' forecast of 8.5 percent.