Food and power prices boost Spain’s inflation rate to highest figure in nearly 30 years

SPAIN’S inflation rate has hit 6.7% this December- the highest annual hike since March 1992.

Official figures published on Thursday from the National Statistics Institute(INE) showed a 1.2% increase on November’s figures.

The rise was higher than had been predicted by some experts.

The INE says that rocketing energy prices and rising food costs are fuelling the increase.

Food inflation has risen by 5% over 12 months.

The OCU consumer organisation has predicted that average electricity bills for December will be 24% higher than in November, despite big tax cuts from the government.

Underlying or core inflation which removes food and energy prices stands at 2.1%.

Spain’s inflation issues are not unique as the Eurozone reported a 4.9% hike for November.

Eurozone figures for December will be published next week.

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