“The estimated annual inflation of the CPI in July 2022 is 10.8%”, as stated by the National Institute of Statistics of Spain (INE). This is the highest level since 1984 and is due, according to the institute, to the increase in the price of food, electricity, clothing and footwear.
If this estimate is confirmed in a new report on August 12, it would mean a new record and an increase of six tenths compared to the month of June, in which inflation stood at 10.2%.
From the Ministry of Economy they assure that inflation “is a global phenomenon and one of the main consequences of geopolitical tensions”, which are generating “a continuous increase in energy prices, especially gas, and also food” , according to the EFE agency. It is true that Eurozone year-on-year inflation has also risen. It has done so to stand at 8.9% according to preliminary data published this Friday by Eurostat, the community statistics office.
The estimated annual variation rate of underlying inflation, which excludes unprocessed food and energy products, also increased six tenths and stood at 6.1%. It would be the highest since January 1993.
The Spanish economy grows by 1.1%
On the other hand, the Spanish economy grew by 1.1% between April and June. “Spanish GDP registers a variation of 1.1% in the second quarter of 2022 compared to the previous quarter in terms of volume”. This increase is due to a rebound in household consumption in the context of high inflation and the impact of the war in Ukraine, and the positive impact of tourismaccording to the INE.
Household consumption grew 3.2%, while business investment fell 2.3%. Investments in housing, building and construction rebounded notably with an increase of 7.8%.
