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Spain August final 12-month inflation at 10.5%
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MADRID (Reuters) -Spanish consumer prices rose 10.5% year-on-year in August, slightly higher than the flash estimate released last month but down from 10.8% during the period through July, final data released by the National Statistics Institute showed on Tuesday.
MADRID (Reuters) -Spanish consumer prices rose 10.5% year-on-year in August, slightly higher than the flash estimate released last month but down from 10.8% during the period through July, final data released by the National Statistics Institute showed on Tuesday.
Analysts polled by Reuters had seen 12-month inflation to August at 10.4%.
Although inflation has softened from a three-decade high in July, it remained high due mainly to a massive electricity price increase and soaring food and non-alcoholic drink prices which grew 13.8% in August, the highest pace since January 1994, INE said.
Core inflation, which strips out volatile food and energy prices, rose to 6.4% year-on-year, the highest pace since January 1993 and up from 6.1% a month earlier, the INE data showed.
Spain said last month it would send a proposal to the European Union on limiting carbon emission permit prices, aiming to reduce energy prices and their effect on inflation.
Russia’s invasion of Ukraine and the subsequent pressure on energy and food markets has stoked inflation, which was already accelerating as the global economy emerged from the coronavirus pandemic.
INE said European Union-harmonised prices during the 12 months to August rose 10.5%, faster than the 10.3% flash estimate reported two weeks ago.
(Reporting by Joao Manuel Mauricio in Gdansk; Editing by Inti Landauro and Edmund Klamann)
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. It is typically measured as an annual percentage increase.
Core inflation measures the long-term trend in prices by excluding volatile items such as food and energy. It provides a clearer view of inflation trends.
The Consumer Price Index (CPI) is a measure that examines the average change over time in the prices paid by consumers for a basket of goods and services.
Year-on-year inflation compares the price level of goods and services in one month to the same month in the previous year, indicating how much prices have changed over that period.
Monetary policy involves the actions taken by a country's central bank to control the money supply and interest rates to achieve macroeconomic objectives such as controlling inflation and stabilizing currency.
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