Inflation leaves double digits, falling to 9% in September

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The decline in electricity and fuels is pushing prices down. Core inflation drops two-tenths to 6.2%, according to INE advance

Relief, albeit only partial, for the consumer’s wallet. After three consecutive months of double-digit growth, inflation moderated to 9% in September from 10.5% in August, according to data released this Thursday by the National Institute of Statistics (INE).

The drop in electricity pushed prices down, as did gasoline and transportation.

For its part, core inflation, which excludes unprocessed foods and energy products, has also fallen two-tenths, from 6.4% in August to 6.2%, when it reached its highest level since January 1993.

The drop is no doubt a breather for citizens, businesses and the government, who have seen how the price hike of recent months has turned into a real nightmare for their daily budget.

However, the 9% that the early data leaves for September is still a very high figure. And it seems clear that the European Central Bank (ECB) is committed to accelerating rate hikes, with the prospect of the next move higher at the October meeting reaching 75 basis points.

At least, the organization’s president, Christine Lagarde, has been anticipating this increased aggressiveness in monetary policy for weeks. The aim is that the movements are not surprised. Yesterday, he reiterated his message that the fight against inflation has priority over economic recovery.

The main fear is that, as the OECD has already foreseen in a recent report, price increases will become a long-term structural problem.

Source: La Verdad

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