Inflation soars in August and reaches highs of the last three and a half years due to the rise in fuel prices
The Consumer Price Index in Spain rebounds seven tenths compared to July and stands at 4.3%
BarcelonaThe rise in fuel prices and the persistent effects of the war in Iran are driving inflation in Spain to its highest levels in three and a half years. During August, the consumer price index (CPI, the indicator that measures the cost of living for families) stood at 4.3%, according to the preliminary data published this Friday by the National Statistics Institute (INE). The figure represents an increase of seven tenths compared to the previous month and is the highest rate of change since February 2023, when Spain and the entire euro area were beginning to leave behind the inflation records registered months after the start of the Russian invasion of Ukraine.
Despite the increase in the general inflation rate, the Spanish government points out that the rise is not fully reflected in the underlying indicator, which excludes energy and unprocessed foods, precisely because they are two products with more volatile prices. In this regard, underlying inflation in August fell by one tenth compared to July, to 2.9% year-on-year.
Given the current scenario, the Spanish executive recalls that it maintains the reduction of the hydrocarbon tax applicable to diesel of 20 cents per liter, a measure that will begin to be applied from next Tuesday, September 1. Similarly, the government continues with the reduction of five cents per liter for gasoline and assures that it maintains a "minute-by-minute" monitoring of the impact of the conflict in the Middle East on the Spanish economy.
