Inflation in Spain at the highest in 29 years

2021-11-22 17:43

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2021-11-22 17:43

Inflation in Spain at the highest in 29 years
Inflation in Spain at the highest in 29 years
photo: hyotographics / / Shutterstock

Spain’s 12-month inflation rate (IPC) in October was 5.4%. and is the highest in 29 years. In just one month, the prices of consumer goods and services increased by 1.2%. – it follows from the latest data of the National Statistical Institute (INE).

The main reasons for the rise in prices are rising electricity costs and disruptions in world production. Electricity bills in Spanish households rose by almost 63% in October. compared to 2020.

The energy crisis translates into fuel prices, which, compared to last year, increased by an average of 28.6 percent. Gasoline is 26.5 percent more expensive, and diesel – 30.5 percent. – this is the highest price level in at least 4 years. Natural gas prices have also risen sharply – by 11.3 percent.

Prices for consumer goods such as olive oil rose by 26%, margarine by 7.7%, and fresh and frozen fruit by 11.3%. With the onset of the winter season, the prices of clothing and footwear increased – by more than 11 percent. 7.6% the price of bicycles has risen.

According to experts from the Bank of Spain and the European Commission report, inflation will continue for many more months next year.

The EU lowered its economic growth forecasts for Spain this year to 4.6%, ie 1.6 points less than predicted by the Pedro Sanchez government, and to 5.5%. in 2022, i.e. by 1.5 points less. According to these estimates, Spain would be the 11th EU country with the lowest economic growth in 2021.

In 2020, Spain’s GDP fell by 10.8% and the current economic recovery is slower than in other EU countries. According to experts, one of the reasons may be a greater increase in employment in the public sector than in the private sector, and lower productivity.

From Saragossa Grażyna Opińska

Source:PAP

About Eric Wilson

The variety offered by video games never ceases to amaze him. He loves OutRun's drifting as well as the contemplative walks of Dear Esther. Immersing himself in other worlds is an incomparable feeling for him: he understood it by playing for the first time in Shenmue.

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