Data published by the National Statistics Institute (INE) showed that in December the consumer price index rose by 6.7% per annum after an increase by 5.5% per annum in October. As a result, inflation has reached its highest level since 1989. Economists had expected the CPI to rise by 5.7%.
Meanwhile, on a monthly basis, consumer price growth accelerated to 1.3% compared to +0.3% in November. Economists had expected an increase of 0.4%.
INE reported that the acceleration of price growth in annual terms was caused by an increase in the cost of electricity, as well as food prices.
Economists expect the inflation rate for 2021 to be 5.7%, which will be the highest value since 1989 (+6.9%).
The data also showed that in December, the harmonized consumer price index (HPCI) increased by 6.7% per annum after an increase by 5.5% per annum in November. Economists had expected a 5.8% increase.