The rising cost of basic food items is partly to blame. / colpisa

Consumer Price Index in Spain jumps to 10.2% in June, the highest figure since 1985

The figure is higher than all market forecasts and places the economy and the Spanish government in an awkward position

C. ALBA / E. MARTÍNEZ Madrid

Inflation continues to be one of the greatest headaches for the Spanish government. After ending May at 8.7%, four points higher than in April, the Consumer Price Index for June stands at 10.2%, the highest rate since April 1985. The rise in fuel, food and non-alcoholic drinks, and increased charges at hotels, cafés and restaurants are the main cause.

The figure is higher than all market forecasts and places the economy and the government in an awkward position as the measures taken so far to alleviate the rising cost of living appear to have had no impact on inflation.

Prime minister Pedro Sánchez said this Wednesday morning, 29 June, that it showed the seriousness of the situation for the European and Spanish economies, but insisted that the measures implemented have helped. Some of those that have been introduced very recently will not be reflected in the inflation rate yet.

Underlying inflation has also soared

Just one year ago the underlying inflation rate – which does not include energy or fresh foods – was 0.2% (and the general inflation rate was 2.7%). It began to rise in June 2021, reached 1% in September and just two months later was at 2.1%. In February, when the war in Ukraine began, it was 3%, went up to 4.9% in May and is now 5.5%, the highest since August 1993.

The data for June has been released in advance and does not detail the cost of individual products. However, in May it was obvious how much these had gone up. The price of vegetable oil had risen by nearly 45% compared with a year before, bread was 12.6% more expensive, eggs had gone up by 25% and cereals 16%.