Inflation rose to 3.1% in October, one percentage point above the eurozone average, thanks to electricity

The withdrawal of price control measures (VAT cuts on food and electricity), which the government applied until the end of 2024 to reduce the economic impact of the war in Ukraine, is having an impact on inflation in Spain. … Its momentum is gradually accelerating, moving further and further away from the 2% level that the European Central Bank (ECB) considers safe. This is in addition to a number of other reasons, including the effect of increasing electricity bills due to the use of gas plants to avoid further power outages, and the significant increase in the price of some food products. Overall, the CPI rose to 3.1% in October, according to the final figures published today by the National Institute for Statistics (INE), confirming data already published late last month.

As already pointed out, this figure is far from the one recommended by European supervisory authorities. In fact, this is the highest level in more than a year and a half, and even more worryingly, it means that Spain’s CPI is almost a point off the eurozone average (2.1% in October, according to Eurostat).

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