Cost of living is surging in Mallorca. | Majorca Daily Bulletin reporter

0

Spanish consumer prices have risen at the fastest pace since September 1984 as inflation in the European countries using the euro currency shot up to another record.

Spain’s National Statistics Institute (INE) said prices have increased by 10.8 percent year-on-year up from 10.2 percent in June.

And today is was confirmed that UK inflation soared to 10.1% in July, reaching double digits for the first time in 40 years.

The CPI figures came in above expectations of 9.8%, and up from 9.4% in June.
The announcement makes the UK the third developed country to reach double digits inflation in July, joining Spain and the Netherlands.

The USA announced last week that its inflation rate had plateaued between June and July, sitting at 8.5% annually.

Like most countries in Europe, Spain is battling a major surge in inflation as a result of the fallout from the war in Ukraine and the reopening of the economy after COVID-related lockdowns.

Economy minister Nadia Calvino has warned that inflation constituted “the main challenge for the Spanish economy”.

The government led by socialist Prime Minister Pedro Sanchez says it is expecting inflation to slow somewhat in the second half of the year.

It has unveiled a series of measures to help households and businesses cope with the cost of living crisis, such as fuel subsidies and lower electricity taxes.

According to Sanchez, the measures amount to 30 billion euros ($31bn), or 2.3 percent of Spain’s gross domestic product.