OECD warns inflation in Spain will remain at 30-year high

OECD warns inflation in Spain will remain at 30-year high Credit: Creative Commons

The inflation forecasts for Spain were included in the OECD’s projections for the world economy, published on Wednesday, June, 8.

The inflation in Spain will reportedly remain at a high until at least 2024 according to the lates projections by the Organisation for Economic Co-operation and Development.

According to the organisation, the CPI will average 8.1 percent in the country this year and will ease to 4.8 percent in 2023. This means that until at least 2024 inflation will remain at highs not seen in the last 30 years.

“Inflation will moderate in 2023, but will remain high due to the impact of the EU’s Russian oil embargo,” explain the authors of the report, referring to Spain.

They also point out that “there is a risk that higher inflation could become entrenched” if there are further shocks in the energy markets or if it begins to pass through more strongly to wages and prices.

The institution has also delivered a sharp cut to its previous growth forecast, prior to the war in Ukraine. The OECD estimates that the Spanish economy will expand by 4.1 percent this year and 2.2 percent in 2023.

The forecast for 2022 is the most pessimistic of all those published this year and the first to take into account the effects of the European Union’s embargo on Russian crude oil, as reported by 20minutos.

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Written by

Joshua Manning

Originally from the UK, Joshua is based on the Costa Blanca and is a web reporter for the Euro Weekly News covering international and Spanish national news. Got a news story you want to share? Then get in touch at editorial@euroweeklynews.com.