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Spain’s 12-month inflation resumes upwards trend after April dip
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MADRID (Reuters) – Spanish 12-month inflation resumed its upward trajectory in May after a dip in April as prices other than energy and food rose at their fastest pace in two decades, preliminary data from the National Statistics Institute (INE) showed on Monday.
MADRID (Reuters) – Spanish 12-month inflation resumed its upward trajectory in May after a dip in April as prices other than energy and food rose at their fastest pace in two decades, preliminary data from the National Statistics Institute (INE) showed on Monday.
Spanish annual inflation accelerated to 8.7% in May, up from 8.3% the previous month, INE said. Twelve-month inflation stood at 9.8% in March, its highest level since 1985.
Annual inflation was higher than the 8.3% forecast by analysts polled by Reuters.
The economic fallout from Russia’s invasion of Ukraine has fueled inflation worldwide, especially through increasing prices of energy and grains.
Core inflation, which strips out volatile food and energy prices, rose to 4.9% year-on-year in May, a 26-year high, from 4.4% a month earlier, the INE data showed.
Although electricity prices in Spain declined compared to last year, the INE attributed the rate increase this month mainly to higher fuel, food and non-alcoholic beverage prices.
Spanish European Union-harmonised inflation was 8.5% in the 12 months through May, up from 8.3% a month earlier.
(Reporting by Mariana Ferreira Azevedo; editing by Inti Landauro and Gareth Jones)
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 change.
Core inflation measures the long-term trend in prices by excluding volatile items such as food and energy. It provides a clearer view of underlying inflation trends.
The inflation rate indicates how much prices have increased over a specific period. It is crucial for economic policy, affecting interest rates and purchasing power.
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