Spain’s inflation rates rise to 10.4% in August increasing employee salary tensions

Spain’s estimated annual CPI inflation in August  has hit 10.4 per cent according to the National Statistic Institute (INE) on Tuesday, August 30.

Spain’s inflation rates in August, saw a rate four tenths of a percentage point lower than that recorded in July, but still 10.4 per cent more expensive than in the same period last year.

The slight decrease in comparison to July is reportedly due to the fall in fuel prices. On the other hand, there was a notable increase in the prices of, among others things, electricity, food, restaurants and package holidays.

The estimated annual rate of change of core inflation (general index excluding unprocessed food and energy products) increased by three tenths of a percentage point to 6.4%. If confirmed, it would be the highest since January 1993.

The news follows reports of inflation increasing a whopping 9.6 per cent in Europe, with Spain sitting high on the leader board, according to a report by Eurostat.

The rate of inflation in Europe saw the increase during the month of May, with Spain above average, currently sitting at an inflation rate of 10.2 per cent.

According to Eurostat data, energy has risen by 42 per cent when compared with June 2021 in the euro area. On the fresh food side, it has risen by 11.2 per cent from a year ago, the highest level ever recorded.

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