Home News Inflation shows biggest rise for 12 years

Inflation shows biggest rise for 12 years

Published on 11/06/2004

11 June 2004

MADRID – Inflation has shown its biggest yearly rise for 12 years, it was announced Friday.

Spain’s consumer prices rose 0.6 percent in May making the inflation rate this year 2 percent.

But the year-on-year rate was 3.4 percent, according to figures released by the National Statistics Institute (INE).

The last time inflation rose as fast as this was in February 1992, when it reached 6.8 percent in terms of the year-on-year figure.

The international rises in petrol and crude oil in May were the underlying causes of the increase in inflation.

Underlying inflation, which excludes prices of volatile items such as fresh food and fuel, rose 0.4 percent last month, making the annual total in 2004 2.7 percent, officials said.

The biggest price rises in May were in alcoholic beverages and tobacco, which increased 4 percent.

Transport costs also went up by 1.6 percent while clothing and footwear rose by 1.4 percent.

Analysts here have said Spanish inflation would likely continue to rise in coming months.

Secretary of state for the economy David Vegara warned in mid-May that inflation would approach three percent in the face of rising oil prices.

In comparison, the European statistics office Eurostat said annual inflation in the 12-nation eurozone was two percent in April after 1.7 percent in March.

[Copyright EFE with Expatica]

Subject: Spanish news