Stock market plummets amid inflation fears
18 May 2006, MADRID — The Spanish stock market fell 3 percent, the largest dip since the present government came to power in March 2004.
18 May 2006
MADRID — The Spanish stock market fell 3 percent, the largest dip since the present government came to power in March 2004.
Amid fears over rising inflation in Europe and the United States, stock exchanges across the world plumetted.
It followed rising consumer price inflation in the eurozone in April to 2.4 percent from 2.2 percent in March.
Eurostat, which compiles European Union statistics, released the figures which showed that in Spain consumer prices last month rose 0.7 percent from March.
Meanwhile, year-on-year inflation in April stood at 2.1 percent compared with the same month last year.
The core inflation rate – which does not include energy and fresh food prices which change constantly – climbed to an annual 1.5 percent in April from 1.3pc in March.
The annual inflation rate in Spain in April was 3.9 percent, the highest in the single currency bloke euro bloc, and 1.5 percent points above the average.
European Central Bank officials have warned Spain must be "vigilant" about its inflation rate.
It may try to encourage measures to cut inflation like raising interest rates.
[Copyright EFE with Expatica]
Subject: Spanish news