The CPI rate for Spain continues to lead the major neighboring countries such as France, Germany, Italy or Portugal
The whole of Europe is suffering from an uncontrolled price escalation. The inflation rate for August in the euro area has risen to 9.1%, two tenths above that of July, registering the highest rate in the historical series. Data released this Wednesday by Eurostat confirms that Spain is above average, with inflation recorded yesterday by the INE at 10.4%, slightly lower than July’s but double-digit.
The main European partners show a very clear price increase, but less than the Spanish ones. This is the case for Germany (8.8%), France (6.5%), Italy (9%) and Portugal (9.4%). Above the prices of Spain are countries such as Belgium (10.5%), Greece (11.1%) or the Netherlands (13.6%).
High energy costs were the cause of the price increases in August across Europe. According to Eurostat data, energy costs 38.3% more than a year ago, while the price of fresh food has increased by 10.9% since August last year. But the inflation spiral has already permeated all products, reflected in core inflation (excluding energy or fresh produce), which rose to 5.5% in August, four tenths above July’s and four points higher than a year ago.
Core inflation in Spain is also higher than the average of the euro countries, at 6.4%, the highest since 1993, almost 30 years ago.
This situation is putting even more pressure on the European Central Bank (ECB), whose Governing Council is meeting again next week, to propose a rate hike that will include interest rates. At its last meeting on July 21, it decided to raise interest rates by 50 basis points and on September 8 it will be decided whether to repeat this half-point increase or launch it at 75 basis points.
The largest price increases in the euro area were recorded in Estonia (25.2%), Lithuania (21.1%) and Latvia (20.8%), while the less marked increases were observed in France (6.5 %), Malta (7.1%) and Finland (7.6%).
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.
