EconomyGlobal Economics

Inflation in Spain reached a 29-year surge due to food and fuel increase.

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According to figures released by the National Statistics Institute (INE) on Monday, Spanish inflation hit its highest level in nearly three decades in November, with increases in food and fuel expenses pushing consumer prices up 5.6 percent year on year.

The rate increased from 5.4 percent in October to 5.8 percent in September 1992, the highest level since 1992. In recent months, inflation has risen across the euro zone, with Spain being particularly heavily struck.

The biggest driver was rising food prices, which was followed by rising vehicle fuel and lubricant prices. According to the INE, a months-long increase in electricity bills was reversed in November.

According to the INE figures, Spanish inflation jumped to 5.6 percent in November, up from 5.4 percent in October, on an EU-harmonized basis. Core inflation, which excludes food and energy prices and is used by central banks to determine monetary policy, increased to 1.7%, the highest level since July 2013.

According to board member Isabel Schnabel, the European Central Bank believes euro zone inflation peaked in November and will gradually slow next year as supply bottlenecks and the energy crisis improve.

Story by : Norvisi Mawunyegah