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Inflation in Spain Inches Up in February

Spanish inflation edged up in February 2023 for the second straight month, partly as a result of higher energy and food prices, official data showed Tuesday.

Inflation in Spain inches up in February

Consumer prices rose by 6.1 percent on an annual basis in February, up from 5.9 percent in January, according to preliminary data from national statistics office INE.

The increase is due to higher electricity costs and prices for food and non-alcoholic beverages, it added in a statement.

Core inflation — which excludes the more volatile categories of food and energy– in the eurozone’s fourth-largest economy stood at 7.7 percent in February, up from 7.5 percent the previous month.

Like other countries across Europe, Spain has been struggling with soaring inflation as a result of the economic fallout from the war in Ukraine and the reopening of economies after coronavirus lockdowns.

Socialist Prime Minister Pedro Sánchez’s government, which is facing a year-end general election, has rolled out a series of aid packages to help households and businesses cope with runaway prices.

The measures have included free or discounted public transport, fuel subsidies and the abolition of the value-added tax (VAT) on basic necessities such as bread and milk.

The measures amount to around €50 billion ($53 billion) in aid since the start of 2022.

Spanish inflation has cooled since it peaked at a record 10.8 percent in July and, despite the uptick in the last two months, remains significantly below the eurozone average.

Source: The Local