Inflation continued to accelerate in October in Spain, reaching 5.5% year-on-year, the highest level recorded since September 1992. This was indicated by a first estimate published yesterday, Thursday, by the National Statistics Institute (INE).
The figure, up sharply from September (4%), is mainly explained by the rise in the prices of raw materials and electricity, which increased in recent weeks in a context of escalating world prices, according to the public body.
In one month, the harmonized consumer price index (HICP), which allows comparisons with other euro zone countries, stood at 1.7 points, the INE added in a statement.
Inflation began to pick up at the beginning of the year in Spain, as in the rest of the European Union, after having remained in negative territory for most of 2020 due to the economic impact of confinement.
According to the European Central Bank (ECB), the rise in prices should reach 2.2% in its annual rate, compared to the 1.9% previously estimated. In that case, inflation would thus exceed the ECB’s medium-term target of 2%.
The rise in prices is causing concern in the markets, but the ECB, which is seeking to prevent the economic recovery from slowing down, calls for calm, as in its opinion the trend is due to temporary factors.