Spain: Inflation slows in August but remains above 10%

Inflation slowed in Spain in August to 10.4% over one year, once morest 10.8% in July, according to an initial estimate published Tuesday by the National Institute of Statistics (INE).

Driven in particular by energy prices, inflation, which had not slowed since April, has been above the 10% mark since June, a level not seen since the middle of the 1980s.

This slowdown in inflation is mainly due to the drop in fuel prices, underlines the INE, while the prices of electricity or food, on the other hand, continued to rise.

Consumer prices are on “a downward slope” which will continue “over the coming months”, reacted Tuesday the Minister of Economy, Nadia Calviño, on public television, calling however “for caution”. because ‘uncertainty is very important because of the war’ in Ukraine.

The harmonized consumer price index (IPCA), which allows comparisons with other countries in the euro zone, slowed to 10.3% once morest 10.7% in July, said the INE.

Core inflation, which does not take into account certain prices such as those of energy, and which is corrected for seasonal variations, on the other hand accelerated to reach 6.4%, once morest 6.1% in July. This figure, if confirmed during the final estimate, would constitute a record since January 1993.

Like all European countries, Spain has been facing a surge in inflation for several months, linked to the tensions caused by the restart of economic activity following the Covid-19 crisis and the war in Ukraine.

This inflation, originally concentrated on electricity and fuel, has gradually spread to all sectors of activity, notably food, with serious consequences for household purchasing power.

According to the Spanish government, inflation should come down by the end of the year but remain high, with an average level of 7.8% expected in 2022.

The executive has multiplied aid plans in recent months to try to offset the effects of inflation on households and businesses, including subsidies on fuel, transport and tax cuts on electricity. .

/ATS