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 stood 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 the rate of inflation.
Prime Minister Pedro Sánchez said the figures showed the seriousness of the situation for European and Spanish economies, but insisted the measures implemented have helped.