31st May 2023
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Inflation in Spain increases slightly again, based on February data

Consumer prices in Spain rose for a second consecutive month, by 6.1% on an annual basis in February, up from 5.9% in January, according to preliminary data from the National Statistics Office (INE).

The increase is due to higher electricity costs and prices for food and non-alcoholic beverages, it said in a statement. ALSO READ: Food prices in Spain have risen more than 15% since January last year.

Core inflation — which excludes the categories of food and energy – in the eurozone’s fourth-largest economy stood at 7.7% in February, up from 7.5% the previous month.

Like other countries across Europe, Spain has been struggling with soaring inflation as a result of the economic fallout from the war in Ukraine and the reopening of economies after the Covid lockdowns.

Prime Minister Pedro Sánchez’s government, which is facing a year-end general election, has rolled out a series of aid packages to help households and businesses cope with runaway prices.

The measures have included free or discounted public transport, fuel subsidies and the abolition of VAT on basic necessities such as bread and milk. ALSO READ: Shops across Spain apply VAT reductions on essential foods.

Total measures amount to around €50 billion in state aid since the start of 2022.

Spanish inflation has cooled since it peaked at a record 10.8% in July last year and, despite the uptick in the last two months, remains significantly below the eurozone average, at 8.6%.

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