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Spanish core inflation at its highest since 1995, INE says -Breaking


© Reuters. An advertisement board at Cepsa’s filling station, Barcelona, Spain on June 9th 2022 shows increased diesel and petrol prices. REUTERS/Nacho Doce

(Reuters.) – In May, the Spanish consumer price index rose 8.7% year on year, up from 8.3% April. The core inflation rate reached its highest point since 1995, official data revealed Friday.

Data from the National Statistics Institute confirmed that a preliminary report was issued late last month.

The data showed that fuel prices have increased by 15% over the past year, and food prices and other non-alcoholic beverages like fruits and bread, are at their highest level in Spain for 28 years. There was an 11% annual increase.

The Core Inflation, which excludes volatile food prices and energy prices was 4.9% in 2015, was higher than 4.4% in April data from the National Statistics Institute.

The Spanish inflation rate dropped to 8.3% due to the lower prices of energy. It had previously climbed to 9.8% in March. Prices then accelerated in May.

The inflation rate has soared worldwide as a result of Russia’s incursion in Ukraine on February 24, although the Spanish government is expecting a slowdown within the next months.

The European Central Bank announced that it will end its lengthy-running stimulus on Thursday and raise interest rates next month. It is likely to follow a larger move in September.

Nadia Calvino, Economy Minister of Spain told Spanish TV Channel TVG that the forecast was for prices to drop to normal next year.

Spanish European Union Harmonized Prices rose 8.5% over a previous year, up from 8.3% in March and in line to the Reuters forecast for 8.5%.