Wednesday 12/8/21

Inflation soars in Spain: October records highest rise in 29 years

There are two main factors that explain the strong price increase in October
Socket by Pixabay.
Photo: Pixabay.

The rise in consumer prices continues to accelerate in Spain, mainly as a result of higher energy prices.

According to the Consumer Price Index (CPI) published today by the National Institute of Statistics (INE), inflation rose 5.5% in October compared to a year ago.

This is the highest year-on-year increase since September 1992, the INE emphasized in a statement.

In September, inflation registered a 4% increase.

There are two main factors that explain the strong increase in October. On the one hand, there is the base effect, which occurs when prices are compared with a 2020 period in which they fell.

On the other hand, there is the very strong increase in the prices of electricity - and also of gas and other fuels like gasoline.

Core inflation

On the other hand, the estimated annual variation rate of core inflation (general index excluding non-processed food and energy products) increased four tenths in October to 1.4%

The core inflation is more than four points below that of the general CPI. This is the highest difference between both indexes since the beginning of the series, in August 1986.