November Sees Rising Inflation Rate in Spain Amid Economic Growth
The Consumer Price Index (CPI) in Spain experienced a modest increase of 0.2% in November, causing its annual inflation rate to rise by six-tenths to 2.4%. This data, released by the National Institute of Statistics (INE) on Thursday, highlights the impact of skyrocketing fuel and electricity costs, contrasting the decreases noted in November 2023.
This uptick marks the second consecutive month of increasing inflation, bringing it to the highest level since July, when it stood at 2.8%. In response, the Ministry of Economy, Trade and Business pointed out that the rise to 2.4% can be primarily attributed to the base effect linked to energy prices.
Carlos Cuerpo's department noted that the average inflation rate over the past year remains at 2.8%, demonstrating a notable decline compared to the peak reached in 2022. Specifically, it has decreased by one point from last year's average and is nearly three times lower than the inflation rate of 2022. Such a reduction emphasizes the effectiveness of the government’s economic policies, which continue to foster growth among the leading economies in the eurozone while steadily reducing inflation.
In terms of core inflation, which excludes unprocessed food and energy products, the rate also saw a drop to 2.4% in November, aligning with the overall CPI.
Examining monthly changes, the CPI recorded a 0.2% increase in November compared to October—this figure is four-tenths lower than the rise noted in October. Furthermore, the harmonized CPI (IPCA) climbed by six-tenths, remaining unchanged month-on-month.
INE is set to release the final CPI data for November on December 13.
In broader economic news, Spain's economy is showing promising growth, achieving a GDP increase of 3.4% compared to the same period last year, outpacing the OECD average significantly. The national GDP is now 6.6% higher than it was at the end of 2019, providing a robust sign of economic recovery amidst ongoing challenges. This growth trajectory underlines Spain's resilience and adaptability in a fluctuating economic landscape.
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