Sunday. 24.09.2023

The Spanish consumer price index (CPI) rose in June to 10.2% year-on-year, its highest mark since April 1985, according to the flash estimate released on Wednesday by the National Institute of Statistics (INE).

The figure is higher than expected by economists, and also higher than those of May (8.7%) and April (8.3%).

In monthly terms, consumer prices rose 1.8%, says the INE.

The Spanish statistical office explained in a press release that this development "is mainly due to the rise in fuel prices, higher this month than in June 2021, as well as food and non-alcoholic beverages, compared to the stability registered the previous year.”

The increase in the prices of hotels, cafes and restaurants - which is much higher than a year ago, when the restrictions on mobility derived from the Covid-19 pandemic still hampered the arrival of visitors from abroad - also had an important influence in the CPI results.

Core inflation

Particularly worrying for analysts and central banks is the increase in core inflation, which calculates the evolution of prices without taking into account the prices of energy and fresh food, which are the most volatile elements of the index.

In June, core inflation rose six tenths, reaching 5.5% year-on-year, according to the INE's flash estimate. If this is confirmed in the definitive reading, which will be published in a few days, this value would be the highest since August 1993.

In an interview with the SER radio station, the prime minister Pedro Sánchez described the inflation data as "bad" and blamed the war in Ukraine. “We knew that the effect of Putin's gas cuts was going to carry over into price developments,” he said.

Consumer prices mark the biggest rise in 37 years in Spain