Core inflation continues to rise to 6.4%, highest since 1993
In August, prices moderated compared to July, but very slightly. The percentage jumps from 10.8%, the highest in 40 years, to 10.4%, still above the double digits, according to data released by the INE on Tuesday. The slight decrease in the CPI rate is due to the fall in fuel prices.
On the other hand, the main drivers of this high inflation were energy and fresh food, in addition to restaurants and tourist packages, although all items in the shopping cart are already skyrocketing.
This is evident from the underlying inflation figures, which stood at 6.4% in August, a percentage that does not take into account energy products or fresh products. They are three-tenths of the July rate, but still at levels not seen in decades. In fact, core inflation was 0.7% a year ago.
The government believes inflation has already begun its “moderation” path, explaining in a statement that inflation spikes were registered in March, when Putin started the war, and June, when Russia began supplying gas to Europe. “The slowdown in inflation coincides with the implementation of the government’s packages of measures, demonstrating the effectiveness of the measures taken,” they say.
Economic Vice President Nadia Calviño explained that “it is normal” that once inflation escalates due to the energy crisis and supply chain problems, there is a “rise in all real estate prices”. . But in an interview on TVE, he predicted that this trend should “stop in the coming months” and that we will return to “more normal inflation levels” next year.
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
