(Reuters) – Spain’s inflation soared to a 29 year high in October, as the national consumer price rose 5.5% year on year, flash data of the National Statistics Institute (INE), showed Thursday.

The September inflation rate jumped from 4.0% to 5.8% and now runs at the fastest pace since September 1992 when it was 5.8%. This was due to the steep decline in the peseta against the deutschmark.

According to INE the fuel for inflation was energy costs, and less by vehicle fuels and lubricants.

INE data showed that Spain’s EU-harmonised Consumer Price Index rose 5.5% in October. This is the highest reading since 1997 when INE began collecting data. Reuters analysts polled expected a 4.8% rise in price.

Although inflation has increased in all parts of the euro region over the last few months, it was not as severe. On Friday, most countries will release their data. The EU-harmonised regional annual rate in September was 3.4%.

According to Pablo Hernandez de Cos (Bank of Spain), the Bank of Spain believes that there will be a high level of inflation in Spain during the coming months. However, their root causes are temporary.

According to him, an increase in energy prices may last the winter due to increased demand for cold weather and low oil and natural gas storage.

The spiralling cost of energy has also pushed Spanish industrial price up to its highest point since December 1977, after rising 23.6% annually in September according to INE data.