Spanish inflation eased for the first time in four months, although rising energy prices as Russia cuts supplies ahead of winter mean the respite is likely to be short-lived, according to Bloomberg.
EU-harmonised consumer prices rose 10.3% from a year earlier in August, slowing from July’s record rise of 10.7%, Spain’s statistics agency said on Tuesday. The rate was in line with average estimates in a Bloomberg survey.
The figures may offer some breathing space to Spanish authorities, which are struggling to contain prices despite billions of euros in aid to households and businesses. The slowdown is due to lower fuel costs.
But with the war in Ukraine raging and the Kremlin using curbs on natural gas flows as retaliation for European Union sanctions, the outlook remains grim. In addition, there were more signs that price pressures were widening: the core inflation index that excludes volatile items such as energy and food rose to 6.4%, the highest rate since 1993.
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