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ARCHIVED - Inflation in Spain reaches 29 year high
The price of electricity, fuel and domestic products continues to skyrocket in Spain
The crisis in consumer prices caused by rising energy costs and bottlenecks in global production is continuing on its upward trend and threatens to put households under severe pressure this Christmas season.
The Consumer Price Index (CPI) shot up to 5.4% in October, the highest price increase recorded in 29 years.
Skyrocketing energy costs are the main cause of this inflation, with household electricity bills costing 62.8% more last month than during the same period the previous year. The cost of fuel has also become 28.6% more expensive in 2021, the highest price in four years. In addition, basic foodstuffs such as olive oil and margarine have also skyrocketed, rising 26% and 7.7% respectively.
As electricity costs continue to rise, more people are turning to natural gas to heat their homes, resulting in an 11.3% increase, while extortionate petrol and diesel have pushed up the price of bicycles by 7.6%.
During the month of September, the price of clothes and footwear also jumped up by 11.1%, while grocery shoppers felt the pinch with an 11.3% rise in the cost of fresh fruit.
Analysts from the Bank of Spain have warned that inflation will continue to increase well into next year and experts are concerned that consumers could soon lose purchasing power, resulting in a slow-down in Spain’s economic recovery since 90% of the economy’s growth depends on domestic demand.
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