Spain: Inflation rises to highest level since October 2008
January 14, 2011
In December, consumer prices increased 0.6% over the previous month, coming in a notch above the 0.5% rise recorded in November. Annual inflation jumped from 2.3% in November to 3.0%, which was slightly above the 2.9% preliminary estimate released by the Statistical Institute on 3 January and represented the highest level since October 2008. The monthly rise was mainly driven by higher prices for transport (+1.9% month-on-month), as well as for alcoholic beverages and tobacco (+6.1% mom), owing to a 7.3% increase to the tobacco tax introduced in December. In contrast, prices for clothing and footwear dropped 1.2% over the previous month due to winter sales. The core inflation index, which does not include prices for unprocessed food and energy, rose 0.3% over the previous month, pushing annual core inflation from1.2% in November to 1.5% in December.