Spain consumer prices rise 3.4 % in May

30th May 2011, Comments 0 comments

Spain's consumer prices surged 3.4 percent in the year to May, preliminary data showed Monday, the inflation rate barely easing despite feeble economic growth.

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

No breakdown was provided but the institute said lower fuel and lubricant prices as well as a decline in the cost of package tours in May had taken the edge off the previous month's price rise.

Pounded by the double-punch of an international financial crisis and the bursting of a property bubble, Spain plunged into a recession with a 3.7-percent GDP contraction in 2009.

The economy stabilised last year, shrinking by just 0.1 percent.

But the unemployment rate poses a major economic challenge, soaring to 21.29 percent in the first quarter of this year -- the highest in the industrialised world.

Definitive inflation figures for May are due out June 14.

© 2011 AFP

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