Spanish inflation rises in July: provisional data

29th July 2010, Comments 0 comments

Spanish 12-month inflation rose in July to 1.9 percent from a year earlier, preliminary data showed Thursday, its highest level in nearly two years.

In a statement, the national statistics institute INE attributed the July increase on higher prices for food, non-alcoholic beverages, gas and package holidays.

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 entered into a recession. It also followed an increase of two percentage points in the sales tax that came into effect on the first of the month.

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.

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.

© 2010 AFP

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