Alex Trelinski
SPAIN’S inflation rate was unchanged in August at 2.7%- the same as July- according to figures published on Friday by the National Institute of Statistics.
Electricity price rises were seen as the main reason for no fall in the rate this month.
Core inflation which does not include more volatile elements like energy products and fresh food rose by 0.1% to 2.4%.
READ MORE:
A Ministry of Economy statement said: “The stabilisation of headline inflation this month is due to the fact that the prices of food and non-alcoholic beverages decreased more than in August 2024.”
“Also electricity costs rose less intensely than a year ago, despite the fact that fuel has become less cheaper,” it added.
Despite the Ministry ‘spin’ that electricity price hikes are lower in terms of percentage than a year ago, they have been climbing more in recent months- resulting in the inflation rate being unchanged.
That is down to an increase in consumption during the summer with the various heatwaves and tourist numbers, along with the fall in the production of some renewable energy sources such as hydroelectric power which tend to lower bills.
Also distributor Red Electrica is more cautious after the late April blackout resulting in the use of more gas plants to generator power, which cost more.
“The combination of price stability and wage increases are allowing families to progressively recover their purchasing power,” the Economy Ministry claimed.
Food and non-alcoholic beverages price have slowed down, with fresh food going from 8% rises in in June to 7.2% in July.
For the rest of the year, experts suggest that the headline inflation rate will rise to 3% in September, and then 2.8% in October, 2.7% in November and 2.5% in December.
Click here to read more Spain News from The Olive Press.
