Spanish inflation rises in July: official data

12th August 2010, Comments 0 comments

Spanish 12-month inflation rose in July to 1.9 percent, official data showed Thursday, its highest level in nearly two years.

The figures from the National Statistics Institute (INE) confirmed preliminary data released on July 29.

It attributed the rise to a gain of 6.2 percent in the price of automobiles and of 4.3 percent in gas prices.

Inflation in June had dipped to 1.5 percent after three months of rises.

The July figure was the highest since November 2008 when Spain fell into recession.

During the first quarter, Spain became the last of Europe's big economies to emerge from recession, with official data showing fragile growth of 0.1 percent.

The Bank of Spain last Friday forecast growth of 0.2 percent in the second quarter while official figures from INE are to be released on this Friday.

Spain slipped into its worst recession in decades at the end of 2008 as the global financial meltdown compounded a crisis in the domestic property market, which had been a major driver for growth.

The recession pushed first-quarter unemployment up to more than 20 percent. pal/wdb/bmm

© 2010 AFP

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