Inflation in Spain continues to rise reaching 10.8% in July
Prices at highest levels since 1984 as Spain’s GDP grew by 1.1% in the second quarter of 2022
Inflation in Spain grew by a further 0.6 percentage points in July to reach 10.8%, the highest level seen since September 1984, according to provisional figures released on Friday morning by the National Statistics Institute.
The increase continues after months of constant rises and affects residents, especially during the summer season.
The surge in the consumer price index is largely driven by rising costs of food, electricity, non-alcoholic beverages, and a lower price drop in clothes and shoes compared to the previous year. Because of this, the Spanish government is set to announce further energy-saving measures on Monday, while PM Pedro Sánchez has already encouraged all workers to forego wearing ties to cut airconditioning costs.
As opposed to previous months, however, fuel prices have fallen in July.
Inflation has been skyrocketing this year in Spain and across the world, due to factors such as the global supply chain issues seen since the pandemic, and exacerbated ever since Russia's invasion of Ukraine.
On the other hand, the estimated annual rate of change in core inflation - which does not take into account unprocessed food or energy products - rose by 0.6 points to 6.1%. If this data is confirmed, it will be the highest since January 1993.
Record-high inflation rates are also attributed to the soaring cost of utilities – that is to say, water, gas, and especially electricity.
The cost of electricity has been making headlines since the summer of 2021 as an overreliance on polluting energy sources coupled with low natural gas reserves has forced prices to skyrocket.
Learn more about the cost of living crisis, fuelled by rising prices and intensified by the consequences of the war in Ukraine, by listening to our recent Filling the Sink podcast episode, which first aired in early April 2022:
Spanish GDP grows
The second quarter of 2022 saw the Spanish GDP grow by 1.1%, while compared to last year, it saw a 6.3% rise.
In the first quarter of 2022, the economy increased by 0.2%.
The contribution of domestic demand to year-on-year GDP growth was 3.6 points, while demand abroad was 2.6 points.