According to the most recent National Statistics Institute data, inflation in Spain is on its way to new highs not seen in the previous three decades.
On the back of rising food and gas prices, Inflation in Spain accelerated in November to its highest level in nearly three decades.
According to preliminary data from the National Statistics Institute, consumer prices increased by 5.6 percent in November, up from 5.4 percent in October.
Inflation in Spain is now growing at its fastest rate since September 1992, when it was 5.8 percent.
According to the statistics office, the increase in inflation in the eurozone’s fourth-largest economy was primarily due to a rise in food prices, which was followed by higher gas prices.
Electricity prices, on the other hand, have fallen slightly after a month-long increase, according to the report.
In Spain, as in the rest of the European Union, inflation has risen since the beginning of the year, after consumer prices fell for the majority of 2020 due to the economic impact of pandemic lockdowns.
In October, eurozone inflation reached 4.1 percent, well above the European Central Bank’s two percent target and matching a high set in July 2008.
However, according to board member Isabel Schnabel, the bank believes eurozone inflation will peak in November and then gradually slow next year as supply bottlenecks and the energy crunch ease.
Investors are concerned that central banks will withdraw their stimulus measures to control inflation sooner than expected.