MADRID (Reuters] – The March increase in Spanish consumer prices was 9.8% year on year, the fastest since May 1985, and a sharp jump from 7.6% in February. This is according to flash data released Wednesday by the National Statistics Institute (INE).

Russia’s invasion in Ukraine and its resulting economic collapse have led to inflation throughout the globe, including through higher energy prices and increased grain prices.

Pedro Sanchez, the Prime Minister, stated that more expensive fuel and electricity were responsible for nearly three-quarters (75%) of overall CPI increases. Reuters analysts polled expected March’s 12-month CPI rise to 8%, according to Reuters.

Bad data is the problem. Sanchez said that bad data affects society and our economy.

In response to growing concerns over the cost of living, his government adopted a variety of measures this week that would reduce energy prices.

Top officials at the European Central Bank insist that inflation is increasing in the euro area. Philip Lane, Chief Economist of the ECB, described high inflation as an import shock and said it will eventually subside.

Lane explained that “we would still diagnose it essentially as an imported inflation shock. It’s a supplier shock.” “Most this inflation will go away.”

The central banks face a difficult policy dilemma: how to keep calm in the midst of market turmoil and respond to price pressures?

INE data also revealed that Spain’s EU harmonised consumer price Index rose 9.8% during the 12-month period to March. That was higher than 8.1% predicted by analysts polled at Reuters, and lower than 7.6% in February.