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ARCHIVED - European inflation at 3 per cent, the highest increase in almost 10 years
Inflation in Spain is worse than the European average, at 3.3% due to rising electricity prices
Inflation in the Eurozone is up 3% year-on-year, far higher than the predicted increases of between 2% and 2.7%. This in in line with national levels for Spain, where inflation reached 3.3% in August 2021, the highest level since October 2012 during the financial crisis.
For Europe as a whole, the consumer price index is at its highest level since November 2011, while core inflation (not including fresh food or energy) has risen from 0.9% in July to the 1.6% in August. This indicates that a large percentage of the cause of the spike in inflation across Spain and Europe in general is down to the rising cost of electricity.
Analysts from the European Central Bank (ECB) warn that inflation in Europe could continue to increase in the fourth quarter of 2021, exacerbated by restrictions on economic activities due to rising levels of Covid infections.
As a countermeasure to increasing inflation rates, Spain’s President Pedro Sánchez has announced an ‘immediate increase’ in the minimum wage to try to get people back to work and get the economy going again. Despite the bleak situation, unemployment in Spain is down in August and mortgage interest rates are favourable for property buyers.
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