Inflation is ‘damaging Spanish competitiveness’

11 August 2006

MADRID – Inflation in Spain is out of control and damaging the country’s competitiveness in Europe, according to an association for self-employed workers.

The National Federation of Associations for Self-employed Workers (ATA) called on the government to tackle inflation after Spain’s National Statistics Institute (INE) released its latest figures on inflation, for July.

The INE said the Consumer Price Index (CPI) had decreased in July by 0.6 percent, which reduced accumulated inflation this year to 1.7 percent, but increased year-on-year inflation to 4 percent.

The annual rate of underlying inflation, which excludes the general index of prices for fresh foods and energy, remained at 3.1 percent, 0.1 percent higher than that recorded in June.

According to the latest figures, Spain is still 1.5 points away from the EU average in terms of inflation.

ATA says Spain’s level of inflation shows no signs of reducing significantly and is asking the government to ensure coming budgets are in line with the real level of inflation and aimed at reducing it.

The fall in July’s CPI was driven by a fall in the prospects of the retail and shoe trade, which saw prices cut by 11 percent due to the sales.

Over the last year, the most inflationist sectors were housing (which rose by 6.8 percent) transport (5.8 percent) and food and non-alcoholic drinks (4.8 percent).

[Copyright EFE with Expatica]

Subject: Spanish news