Inflation in Spain hits 37-year high

Spain has recorded its highest inflation since April 1985, surging to 10.2% in June from 8.7% in the previous month, preliminary data from the National Statistics Institute (INE) showed.

The reading was higher than the 9.0% forecast by analysts polled by Reuters.

The INE data showed that core inflation, which strips out volatile food and energy prices, climbed to 5.5% year-on-year from 4.9% a month earlier, the highest since August 1993.

“The news of the last few weeks is not positive ... Russia’s gas and oil export cuts are accelerating rising energy prices,” Economy Minister Nadia Calvino told parliament last week, according to Reuters.

The INE indicated that the record rise of inflation in Spain was mainly due to skyrocketing food and fuel prices. Also influencing the increase in national consumer prices are the costs of hotels, cafes and restaurants, which have all risen since last year, the INE said.

The soaring cost of living in Spain has put pressure on the government. Last week, Prime Minister Pedro Sanchez passed a second series of measures, worth $9.45 billion, in an effort to tame inflation.

Rising consumer prices “show the severity of the situation and the measures we are taking are appropriate,” the PM told local radio station Cadenza SERA.

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