Daily Sabah logo

Politics
Diplomacy Legislation War On Terror EU Affairs Elections News Analysis
TÜRKİYE
Istanbul Education Investigations Minorities Expat Corner Diaspora
World
Mid-East Europe Americas Asia Pacific Africa Syrian Crisis Islamophobia
Business
Automotive Economy Energy Finance Tourism Tech Defense Transportation News Analysis
Lifestyle
Health Environment Travel Food Fashion Science Religion History Feature Expat Corner
Arts
Cinema Music Events Portrait Reviews Performing Arts
Sports
Football Basketball Motorsports Tennis
Opinion
Columns Op-Ed Reader's Corner Editorial
PHOTO GALLERY
JOBS ABOUT US RSS PRIVACY CONTACT US
© Turkuvaz Haberleşme ve Yayıncılık 2023

Daily Sabah logo

عربي
  • Politics
    • Diplomacy
    • Legislation
    • War On Terror
    • EU Affairs
    • Elections
    • News Analysis
  • TÜRKİYE
    • Istanbul
    • Education
    • Investigations
    • Minorities
    • Expat Corner
    • Diaspora
  • World
    • Mid-East
    • Europe
    • Americas
    • Asia Pacific
    • Africa
    • Syrian Crisis
    • Islamophobia
  • Business
    • Automotive
    • Economy
    • Energy
    • Finance
    • Tourism
    • Tech
    • Defense
    • Transportation
    • News Analysis
  • Lifestyle
    • Health
    • Environment
    • Travel
    • Food
    • Fashion
    • Science
    • Religion
    • History
    • Feature
    • Expat Corner
  • Arts
    • Cinema
    • Music
    • Events
    • Portrait
    • Reviews
    • Performing Arts
  • Sports
    • Football
    • Basketball
    • Motorsports
    • Tennis
  • Gallery
  • Opinion
    • Columns
    • Op-Ed
    • Reader's Corner
    • Editorial
  • TV
  • Business
  • Automotive
  • Economy
  • Energy
  • Finance
  • Tourism
  • Tech
  • Defense
  • Transportation
  • News Analysis

Energy costs push Spanish inflation to 29-year high

by REUTERS

MADRID Oct 28, 2021 - 4:13 pm GMT+3
High-voltage power lines and an electricity pylon are seen at dusk outside Madrid, Spain, Sept. 29, 2021. (Reuters Photo)
High-voltage power lines and an electricity pylon are seen at dusk outside Madrid, Spain, Sept. 29, 2021. (Reuters Photo)
by REUTERS Oct 28, 2021 4:13 pm
RECOMMENDED
The National Assembly of Azerbaijan, Baku, Azerbaijan, Nov. 13, 2019. (Shutterstock Photo)

Azerbaijan's parliament approves Turkic Investment Fund

Turkic-Investment-Fund

Spain’s inflation surged to a 29-year high in October as national consumer prices rose 5.5% year-on-year, flash data from the National Statistics Institute (INE) showed on Thursday, threatening the economic recovery.

Inflation sped up from 4.0% in September and is running at its fastest pace since September 1992, when the peseta weakened against the deutschmark and the rate reached 5.8%.

Driving the surge was an increase in energy costs and, to a lesser extent, in prices for package holidays and vehicle fuels and lubricants.

Soaring electricity prices play such a prominent role that the gap with core inflation, which excludes energy and food, is the highest since records began in 1986.

Inflation has risen across the euro zone in recent months, but to a lesser extent. The region's harmonized annual rate was 3.4% in September.

Spanish core inflation, at 1.4% in October, is the indicator that most concerns experts and central banks in anticipating possible changes in monetary policy.

While the government argues price rises are transitory, economists fear they could trigger second-round effects on wages and erode corporate competitiveness.

Falling unemployment, driven by a sharp increase in hospitality hiring over the summer, is likely to exacerbate price pressure.

Industrial prices reached their highest level since 1977 after jumping 23.6% year-on-year in September, according to INE data published this week.

And, potentially compounding the effect, Spain is set to raise pensions in line with inflation and increase the minimum wage and public salaries in 2022.

Responding to elevated energy prices, the Funcas thinktank on Wednesday trimmed its 2021 economic growth forecast to 5.1% from 6.3%.

INE data also showed Spain's EU-harmonized consumer price index rose by 5.5% in October on an annual basis, the highest reading since the series began in 1997. Analysts polled by Reuters had expected a 4.8% price increase.

Spain's central bank expects relatively high inflation rates to continue over the coming months although the underlying causes are transitory, Governor Pablo Hernandez de Cos said on Monday.

Elevated energy costs could persist through the winter as cold weather boosts demand and oil and gas storage levels are relatively low, he said.

Spain recently approved a package of measures to mitigate the impact of rising gas prices on consumers, but watered down the bill after fierce opposition from utilities.

RECOMMENDED
The National Assembly of Azerbaijan, Baku, Azerbaijan, Nov. 13, 2019. (Shutterstock Photo)

Azerbaijan's parliament approves Turkic Investment Fund

Turkic-Investment-Fund
  • shortlink copied
  • RELATED TOPICS
    fight-against-terrorism DEUTSCHE-BANK US-LIBYA-RELATIONS
    KEYWORDS
    spanish economy inflation energy costs natural gas prices
    The Daily Sabah Newsletter
    Keep up to date with what’s happening in Turkey, it’s region and the world.
    You can unsubscribe at any time. By signing up you are agreeing to our Terms of Use and Privacy Policy. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
    Mayan pyramid and ruins in the famous Tikal National Park, Guatemala. (Getty Images Photo)

    Scientists discover 417 Mayan cities in Guatemala's forested area

    mayan-city
    Voters cast ballots at a polling station set up by the Rotterdam Consulate-General in the Hague, May 20, 2023. (AA Photo)

    Far-right Wilders tells Turks to 'pack bags' for voting for Erdoğan

    geert-wilders

    Erdoğan, el-Sissi agree to reappoint Turkish, Egyptian envoys

    TÜRKIYE-EGYPT-RELATIONS

    Erdoğan meets with former economy chief Mehmet Şimşek: Sources

    Turkish-economy
    In photos: Heavy snowfall grips Turkey
    PHOTOGALLERY
    • POLITICS
    • Diplomacy
    • Legislation
    • War On Terror
    • EU Affairs
    • News Analysis
    • TÜRKİYE
    • Istanbul
    • Education
    • Investigations
    • Minorities
    • Diaspora
    • World
    • Mid-East
    • Europe
    • Americas
    • Asia Pacific
    • Africa
    • Syrian Crisis
    • İslamophobia
    • Business
    • Automotive
    • Economy
    • Energy
    • Finance
    • Tourism
    • Tech
    • Defense
    • Transportation
    • News Analysis
    • Lifestyle
    • Health
    • Environment
    • Travel
    • Food
    • Fashion
    • Science
    • Religion
    • History
    • Feature
    • Expat Corner
    • Arts
    • Cinema
    • Music
    • Events
    • Portrait
    • Performing Arts
    • Reviews
    • Sports
    • Football
    • Basketball
    • Motorsports
    • Tennis
    • Opinion
    • Columns
    • Op-Ed
    • Reader's Corner
    • Editorial
    • Photo gallery
    • Jobs
    • privacy
    • about us
    • contact us
    • RSS
    © Turkuvaz Haberleşme ve Yayıncılık 2021