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Spanish consumer prices rose 10.5% year-on-year in August, slightly higher than the flash estimate released last month but down from 10.8% during the period through July, final data released by the National Statistics Institute showed this morning.

Analysts polled by Reuters had seen 12-month inflation to August at 10.4%.

Although inflation has softened from a three-decade high in July, it remained high due mainly to a massive electricity price increase and soaring food and non-alcoholic drink prices which grew 13.8% in August, the highest pace since January 1994, INE said.

Core inflation, which strips out volatile food and energy prices, rose to 6.4% year-on-year, the highest pace since January 1993 and up from 6.1% a month earlier, the INE data showed.

Spain said last month it would send a proposal to the European Union on limiting carbon emission permit prices, aiming to reduce energy prices and their effect on inflation.

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