Data published by the National Statistics Institute (INE) showed that in November consumer inflation continued to rise and reached the highest level in 29 years.
According to the report, in November the consumer price index increased by 5.5% per annum after an increase of 5.4% per annum in October. The latter value was the highest since 1992. However, economists had expected a 5.6% increase
Meanwhile, on a monthly basis, consumer prices rose by 0.3%, slowing sharply compared to October (+1.8%). Economists had expected a 0.4% increase.
INE reported that the acceleration of price growth in annual terms was caused by an increase in the cost of food (+3.3% per annum) and transportation costs (+13.5% per annum).
The data also showed that in November, the core consumer price index - excluding food and energy - increased by 1.7% per annum. In October, the core CPI recorded an increase of 1.4%.
Economists note that a further increase in consumer inflation will negatively affect the economic prospects of Spain. On the eve, the head of the Bank of Spain said that high inflation, supply problems and an increase in cases of coronavirus will slow down the growth of the country's economy and cause a deterioration in growth forecasts for the fourth quarter of 2021 and the beginning of 2022.