Spain August inflation at 10.5%

MADRID  -Spanish consumer prices rose 10.5 percent year-on-year in August, slightly higher than the flash estimate released last month but down from 10.8 percent during the period through July, final data released by the National Statistics Institute showed on Tuesday.

Analysts polled by Reuters had seen 12-month inflation to August at 10.4 percent.

Although inflation has softened from a three-decade high in July, it remained high due mainly to a massive electricity price increase and soaring food and non-alcoholic drink prices which grew 13.8 percent in August, the highest pace since January 1994, INE said.

Core inflation, which strips out volatile food and energy prices, rose to 6.4 percent year-on-year, the highest pace since January 1993 and up from 6.1 percent a month earlier, the INE data showed.

Spain said last month it would send a proposal to the European Union on limiting carbon emission permit prices, aiming to reduce energy prices and their effect on inflation.

Russia’s invasion of Ukraine and the subsequent pressure on energy and food markets has stoked inflation, which was already accelerating as the global economy emerged from the coronavirus pandemic.

INE said European Union-harmonized prices during the 12 months to August rose 10.5 percent, faster than the 10.3 percent flash estimate reported two weeks ago