Inflation rate busts 10% mark in Spain for first time since 1980s

INFLATION in Spain has broken the 10% barrier for the first time since April 1985, according to figures published on Wednesday by the National Institute of Statistics(INE).

The Consumer Price Index(CPI) stands at 10.2%- a 1.8% hike on May’s figures.

It’s the highest monthly spike in inflation since 1.8% was achieved in January 1985.

The rise is down to increases in fuel prices coupled with food and non-alcoholic beverages.

The INE adds that price rises at cafes, restaurants, and hotels have also contributed to the June figure.

The government and economists did not expect the CPI rate to rise so sharply, especially as a new maximum price of gas for electricity generation came into force on June 15.

Core inflation, which excludes the most volatile prices of unprocessed food and energy, has shot up by 0.6% on May’s figure to 5.5%.

That’s the highest core rate since August 1993.

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