Spain's Inflation Rises to 2.3% in June Amid Fuel Price Surge

The Consumer Price Index (CPI) in Spain saw an increase in its year-on-year rate by three-tenths in June, reaching 2.3%. This uptick primarily stemmed from rising fuel prices, as reported by the National Statistics Institute (INE) on Tuesday. This figure surpasses earlier estimates released by Statistics, which anticipated a smaller rise of two-tenths — projecting a year-on-year rate of 2.2%. After witnessing three consecutive months of declining inflation, the CPI rebound in June signals a renewed upward trend. Nevertheless, the Ministry of Economy, Trade and Industry has stated that these figures confirm a stabilization trajectory for inflation around the 2% mark, which remains a benchmark for the European Central Bank. Core inflation, which excludes volatile items, remains stable at 2.2%, matching May’s figures. The Ministry pointed out that the rise in inflation during June is chiefly attributed to increased fuel prices, reflective of escalating oil and gas costs in international markets. This rise contrasts sharply with the decrease observed in June of the previous year. Interestingly, the Ministry also noted a significant drop in olive oil prices, which have fallen by 48% since their peak in April 2024, reaching levels not seen in over two years. Accompanying this, there has been a deceleration in accommodation services and a reduction in the contribution from tourist packages. The Department led by Carlos Cuerpo emphasized that Spain continues to experience a climate of price stability and moderation. Coupled with increases in wages, this enables households to maintain their purchasing power while enjoying growth prospects that exceed those of major European economies. For continued updates, you can follow El Huffpost and access news conveniently through their mobile application, available for both Android and iOS. Related Sources: • Source 1 • Source 2