Spain’s annual inflation rose to 10.8% in July, above market expectations of 10.6%, hitting the highest level since 1984. The figure was 10.2% in June.
The increase in inflation was largely driven by the rising cost of food and non-alcoholic beverages, and electricity.
Spain’s National Statistics Institute said housing increased its variation by four points to 23%. Prices of food and non-alcoholic beverages also surged to 13.5%, the highest since January 1994.
Excluding cost of food and energy, core inflation rose to 6.1%, the highest since January 1993.
Like most countries in Europe, Spain is battling a major surge in inflation as a result of the fallout from the war in Ukraine and the reopening of the economy after COVID-related lockdowns.
Elesewhere, France reported annual inflation of 6.1% in July, the highest since 1985. The figure was 5.8% in June.
The increase in inflation resulted from the acceleration of services, which rose to 3.9% from 3.3% in June, food – up to 6.8% from 5.8% – and, to a lesser extent, manufactured goods prices rising to 2.7% from 2.5%, according to the National Institute of Statistics and Economic Studies.
The prices of energy slowed down slightly to 28.5% from 33.1%.
On a monthly basis, consumer prices rose 0.3%, decelerating from a 0.7% increase in the previous month.