Big rise in inflation.

Big rise in inflation.

01-01-2022

Spanish consumer prices in December rose 6.7% from the same month last year, the fastest annual pace of inflation since 1989, flash data from the National Statistics Institute (INE) showed.

The 12-month inflation rate to November was 5.5%, and analysts polled by Reuters had expected the final 2021 reading to come to 5.7%.

Prices increased 1.3% in December from November, compared with a 0.2% rise in December 2020, INE said.

Electricity fees drove the annual price index to the 32-year high, INE said, adding that prices for food also rose significantly in 2021, after a general decline the previous year.

The inflation rate for 2021 was the highest since a 6.9% increase in 1989, when the country was experiencing a rapid economic expansion after joining the European Community, as the European Union was then called, in 1986.

Spain also registered an annual inflation rate of 6.9% in March 1992.

INE data also showed Spain's EU-harmonised consumer price index rose 6.7% in December on an annual basis, up from 5.5% in November. Analysts polled by Reuters had expected a reading of 5.8%.

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David / Hace 19 days

The west is no longer driving the world economy and insofar commodity prices. That privilege is now that of the east. And costs are in USA dollars. Weak economies like Spain with feel the impact most due to its use of the euro. The world has moved away from the European Union’s closed market and its low productivity model. The lose ecb fiscal policies will only fuel this inflation problem and cause friction similar to the 2010 euro crisis.

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