Inflation rose again in Spain in May to reach 8.7% over one year, 0.4 points more than in April, according to an initial estimate published Monday by the National Institute of Statistics. (INE). This momentum is explained by soaring food and fuel prices, up sharply over one year despite the measures implemented by the Spanish government to reduce consumer bills. It comes as a slight decline was observed in April (8.3%), giving hope for the beginning of moderation after a peak of 9.8% reached in March – the highest level in Spain for 37 years.
Core inflation – which does not take into account certain prices such as energy prices, and which is seasonally adjusted – also rose to 4.9%, its highest level since 1995. The harmonized consumer price index (IPCA), which allows comparisons with other countries in the euro zone, rose by 8.5% over one year, specifies the INE.
Spain has been facing for several months, like many countries in the world, a surge in inflation linked to the tensions caused by the recovery of economic activity after the Covid-19 crisis and the war in Ukraine. In an attempt to contain this rise in prices, the Spanish government has adopted a direct aid plan of six billion euros for households and businesses, mainly targeting energy prices. This plan includes fuel subsidies, an increase in the minimum subsistence income and extends until June 30 the tax cuts in force since last summer, intended to reduce electricity bills. According to the Spanish Minister of Economy Nadia Calviño, these measures should allow a gradual decline in consumer prices over the coming months, the “peak” having, according to her, been reached in March.
