Inflation Rises Again in Spain Amid Economic Growth
The Consumer Price Index (CPI) in Spain rose by 0.6% in October compared to the previous month, increasing its annual rate by three-tenths to 1.8%, according to preliminary data released on Wednesday by the National Institute of Statistics (INE). The agency attributed this rise in CPI to the increase in fuel prices and, to a lesser extent, the rise in electricity and gas prices. This upward trend in inflation has emerged after three consecutive months of declines.
Despite this increase, the Ministry of Economy, Trade and Business emphasized that inflation still remains below the 2% reference level set by the European Central Bank (ECB). Furthermore, the core inflation, which excludes unprocessed food and energy products, saw a rise of one-tenth in October, reaching 2.5%, which is 0.7 percentage points above the general rate.
On a monthly basis, the CPI saw its largest increase since April of this year, when it rose by 0.7%. The Harmonized Consumer Price Index (HICP) also experienced a minor increase, climbing by one-tenth in October to reach 1.8%, and showing a 0.4% rise in monthly values. The INE is set to release definitive CPI data for October on November 14.
Spain continues to showcase strong economic growth amid these inflationary pressures, maintaining the highest growth rates among developed economies. According to the Ministry of Economy, the latest economic data has had a positive impact on the micro-level, improving the economic situation and outlook for both businesses and households.
In line with this, Spanish GDP grew by 0.8% in the third quarter, accelerating its annual growth rate by two-tenths to 3.4%. Domestic demand significantly contributed to the year-on-year growth of GDP, accounting for 2.7 percentage points, while external demand added 0.7 percentage points to this growth.
As Spain navigates the complexities of rising inflation coupled with robust economic growth, the government remains focused on strategies to sustain this momentum while managing consumer price stability.
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