Inflation rises to 4.1pc - highest since 2001

30th May 2006, Comments 0 comments

30 May 2006, MADRID — The year-on-year inflation rate went up two points in May to 4.1 percent, according to the National Institute of Statistics (INE).

30 May 2006

MADRID —  The year-on-year inflation rate went up two points in May to 4.1 percent, according to the National Institute of Statistics (INE).

It is the highest rate of inflation in the month of May since 2001, when the rate was 4.2 percent.

Analysts expected a slow rise to 4 percent, after inflation went up to 3.9 percent in the previous two months.

José Luis Martínez Campuzano, a strategist at Citigroup in Spain, said he believed the country was now paying for the reduction of inflation in May 2005, when the rate fell to 3.1 percent.

Generally, retail sales fell in April by 3.3 percent, compared with a rise in March of 2 percent.

But at the same time sales in minority sectors went up by 0.4 percent in April, compared with the same month the year before.

Martínez said consumer sales appeared to be recovering and  the construction sector continued to be in a strong position.

[Copyright EFE with Expatica]

Subject: Spanish news

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