Inflation in Spain reached 10.8% per annum in July and is the highest in the last 38 years

In a record spanning nearly four decades, Spain’s annual inflation hit 10.8% in July, according to a first estimate released Friday by the National Statistics Institute (INE).

This estimate would place inflation “at the highest levels since September 1984 “almost 38 years ago, indicated in a statement to INE, which attributes the upward trend to food and electricity prices.

The harmonized index of consumer prices (HICP), which allows comparisons with other countries in the euro area, also stood at 10.8% in July, 0.8 points more than in June (10%), he specified. the public agency.

Core inflation is also on the rise, which excludes energy prices and discounts seasonal variations, settling at 6.1%, compared to 5.5% in the previous month.

Like other European countries, Spain has been facing a rise in inflation for several monthsfollowing the tensions caused by the recovery of the economy after the restrictions imposed by the covid-19 and the war in Ukraine.

“The main challenge for the Spanish economy is inflation,” Economy Minister Nadia Calviño acknowledged Tuesday, recalling that the price hike, initially concentrated in energy, has already spread to other sectors.

low expectations

According to the Spanish government, inflation should start to decline in the second half of the yearalthough it will remain high, with an average level of 7.8% forecast for 2022.

The executive has multiplied aid plans in recent months to try to offset the effects of inflation on households and businesses, mainly with fuel subsidies and lower taxes on electricity.

In total, Spain has mobilized “30,000 million euros (30,630 million dollars)”, equivalent to 2.3% of its gross domestic product (GDP), since prices started to rise a year ago, the prime minister, the socialist Pedro Sánchez.

According to the government, the various measures have made it possible to reduce inflation by more than three points, although so far they have not been able to stop the rise, which continues.