Spain and Germany with record inflation in almost 30 years

Inflation continued to accelerate in Spain to 5.6% annually at the end of November, its highest level since September 1992, according to an advance estimate published by the National Institute of Statistics (INE).

The figure was above the data of the previous month, when it stood at 5.4 percent.

The price increase is mainly explained by food and fuel.

In one month, the Harmonized Consumer Price Index (HICP), which allows comparison with other countries in the euro zone, registered a variation of 0.3%, according to the INE.

Inflation started to rise at the beginning of the year in Spain, as in the rest of the European Union, after having remained negative for most of 2020 due to the economic impact of the lockdown.

Inflation has been the epicenter of the economic debate for months. Central banks repeat the mantra that it is transitory, an ambiguous term that no one knows how to translate in months.

German pockets also suffer

German inflation reached 5.2% in annual rhythm in November, its highest level since June 1992, according to provisional figures from the Destatis statistics office published yesterday.

The prices of the first European economy were driven by the cost of energy, which rose 22.1% in one year, and the shortage of some goods.

“Many did not expect such significant price increases,” reacted Isabel Schnabel, of the board of the European Central Bank (ECB), but said that the peak of inflation in Germany would have been reached in November and will begin to reduce “progressively in the coming months. ”Until you approach your goal of 2 percent.

Above average

Last month, both Spain and Germany maintained inflation above the average for the euro zone countries.

On November 17, the European statistics agency Eurostat said that the euro area’s annual inflation rate was 4.1% in October, compared to 3.4% in September. Spain and Germany registered data of 5.4 and 4.6%, respectively.

The greatest impact came from energy prices with an increase of 2.21 percentage points (pp), followed by services (0.86 pp), non-energy industrial goods (0.55 pp) and food, alcohol and tobacco (0.43 pp).

For the European Union, the inflation rate was 4.4% per year.



Reference-www.eleconomista.com.mx

Leave a Comment