Spanish official inflation highest for almost two years

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Spanish 12-month inflation surged to 2.1 percent in September, the highest level for nearly two years, official data showed on Thursday.

The figure from the National Statistics Institute (INE) was slightly above its preliminary estimate of 2.0 percent released on September 29.

Inflation in June had dipped to 1.5 percent after three months of rises.

The INE attributed the September rise to a gain of 6.8 percent in transport costs and of 4.2 percent in housing.

The figure was the highest since November 2008 when Spain fell into its worst recession in decades as the global financial meltdown compounded a crisis in the domestic property market, which had been a major driver for growth.

It emerged during the first quarter of this year with tepid growth of 0.1 percent and 0.2 percent in the second.

The recession has pushed the unemployment rate up to more than 20 percent.

© 2010 AFP

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