Spain’s inflation rate slowed slightly in August as fuel prices eased, but it remained high due to rising electricity and food prices, official data showed on Tuesday.
The Russian invasion of Ukraine has sent inflation soaring worldwide, prompting central banks to hike interest rates in an effort to rein in consumer prices.
Spain’s annual rate hit 10.4%, compared to 10.8% in July, according to the National Statistics Institute (INE).
Inflation has remained in double digits in the eurozone country since June, a level not seen since the mid-1980s. ALSO READ: Spain’s 12-month inflation rate over 10% in June, for first time since 1985.
Economy Minister Nadia Calviño said consumer prices were on a ‘downward slope’ that will continue ‘over the course of the next months’. But she called for ‘caution’ as ‘uncertainty is very high due to the war’.
The Spanish government has rolled out aid packages in recent months to help households and businesses weather the inflationary pressure. ALSO READ: Spanish Congress approves country’s energy saving plan.
The European Central Bank (ECB), which oversees monetary policy in the eurozone, raised its interest rates for the first time in over a decade in July as energy prices drove inflation ever higher.
The ECB is expected to raise rates again at its next meeting on September 8th, with calls increasing for the bank to act decisively.