Spain consumer prices stable at 3% in July

29th July 2011, Comments 0 comments

Spain's consumer prices remained stable in July at 3.0 percent, official data released Friday.

In April annual consumer price inflation had touched a 30-month peak of 3.5 percent, the National Statistics Institute (INE) said.

Inflation in Spain remains at a high level, comparable to that reached in late 2008, or just before the country plunged into recession as the property boom collapsed.

In recent months, soaring fuel costs, higher tariffs on cigarettes and a slight recovery in the property market have helped push up prices.

The inflation rate is well above the eurozone average of 2.7% even though the country has only timidly emerged from recession.

The Bank of Spain predicts the inflation will decline over the coming months, to reach 1.7 percent at the end of 2011.

The figures released Friday are provisional, and the INE is to publish definitive data for July on August 12.

© 2011 AFP

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