(MENAFN- Trend News Agency)
Spain's inflation rate climbed to 10.8 percent in July, the
highest in 38 years, according to data published by the Spanish
Statistical Institute (INE) on Friday, Trend reports citing
Xinhua .
In June, inflation stood at 10.2 percent.
INE has attributed the rise to higher electricity prices,
coupled with price hikes for food and non-alcoholic drinks.
The new data have confirmed INE's preliminary predictions made
on July 29 and shown that inflation is now at its highest level in
Spain since September 1984.
Under its impact, the Spaniards have seen significant increases
in the prices of eggs, milk and other dairy products, as well as
meat, bread and cereals.
Electricity price also hiked in July, becoming one of the main
causes of inflation.
Statistics show continued price hikes since the start of 2021.
The inflation rate, still at 0 percent in February last year, has
been rising consistently mainly due to rising energy prices. By the
end of last year, the consumer price index (CPI) stood at 6.5
percent.
Inflation continued to rise at the start of this year and jumped
to 9.8 percent in March, coinciding with the start of the
Russia-Ukraine conflict, and climbed persistently until the current
level except for April.
The Spanish government has tried to combat rising energy costs
by lowering value-added tax on energy bills and reaching an
agreement with the European Union allowing it to limit the effects
of gas prices on the cost of electricity, as well as financing a
20-cent per liter reduction in the cost of gasoline.
However, with a severe drought that is likely to affect farm
produce including olives, fruit and vegetables, food prices are set
to rise further in the coming months, according to local media
reports.
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