Petrol price rises push inflation up to 3.7pc

14th October 2005, Comments 0 comments

14 October 2005, MADRID — Inflation rose 0.6 percent in September to 3.7 pc year-on-year according to the latest figures.

14 October 2005

MADRID — Inflation rose 0.6 percent in September to 3.7 pc year-on-year according to the latest figures.

The Spanish National Institute of Statistics said in the first nine months of 2005, the index of prices had risen by 0.1 pc to 2.5pc.

This puts inflation much higher than the 2pc which European Union nations had aimed for. Figures released in France and Germany in the past week.

David Vegara, Spanish secretary of state for the economy, said: "This cannot be considered positive."

But he said he clearest explanation was the 15 percent rise in the cost of crude oil and other energy sources this year and its knock-on affects on the cost of transport.

If there is a rise in the price of petrol in the last months of the year, inflation will continue to increase, added Vegara. 

The rise in crude prices has increased fears the government may have to introduce anti-inflationary measures.

The Central European Bank said recently it was monitoring the situation, though it said at present it appeared "adequate".

Clothing showed the sharpest price rise, going up by 3.4 pc in September, followed by transport costs, which increased by 2.2 pc – a year-on-year rise of 9.2 percent.

Inflation figures do not include the most volatile products, fresh food and energy products.

[Copyright EFE with Expatica]

Subject: Spanish news 

0 Comments To This Article