The moderation in energy prices is benefiting from the first price fall in a year and a half
Inflation eased somewhat in November thanks to a slight fall in energy prices. Prices fell to 10% in November after reaching record levels last month when inflation peaked at 10.6%. Spain has also experienced a five-tenths improvement – from 7.3% in October to 6.6% in November – and remains the country with the lowest prices in the euro area, according to preliminary data released by Eurostat this Wednesday.
Sources from the Ministry of Economic Affairs have given a positive assessment of the development of inflation, attributing it “to the positive effect of the measures taken to cushion the rise in prices”. Similarly, they have emphasized that prices remain 3.5 points below the eurozone average, “improving competitiveness for businesses and the Spanish economy as a result.”
The good numbers are largely due to the moderation in energy prices, the main driver of the rise in inflation, which fell by more than six points compared to last month. The same has happened with food, which has seen a slight improvement from 15.5% to 13.8%, triggering the first drop in inflation in a year and a half.
This has particularly benefited Spain, France (7.1%), Malta (7.2%) and Luxembourg (7.3%), which maintain the lowest prices in the euro area. On the other side of the coin are Latvia (21.7%), Lithuania (21.4%) and Ireland (21.4%), with levels double the average of the rest of the countries with the common currency.
The European Central Bank (ECB) recently warned that inflation will remain high at least until mid-2023. In addition, prices will gradually fall. As the entity’s vice president, Luis de Guindos, warned mid-month, “technical recession in the Eurozone is becoming increasingly likely”.
Source: La Verdad
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
