(Reuters) – Inflation in Spain rose to 3.5% in September, supported by soaring energy costs, preliminary data from the National Statistics Institute (INE) showed on Thursday.
September’s 12-month inflation rate was higher than August’s 2.6 percent and in line with the consensus of analysts polled by Reuters.
This rate is the highest since April, when price increases reached 4.1%.
The increase in electricity and fuel prices is the main reason for this increase, the INE said.
Oil prices are fueling inflationary pressures, with Saudi Arabia and Russia cutting crude production.
“What we are seeing now is that the recovery in oil prices is distorting inflation growth,” said Manuel Cardoso of BBVA Research, adding that it is very likely that inflation will be above 4%. at the end of the year.
The inflation rate in Spain remains well below the peak of 10.8% reached in July 2022, and is one of the lowest in the euro zone.
Tax reductions on energy bills and fuel subsidies were part of the measures taken to combat soaring prices by the Spanish government, which is also considering new ones or renewing some by the end of the year.
Core inflation, which excludes volatile prices for unprocessed food and energy, fell to 5.8% year-on-year from 6.1% in the period through august.
The Bank of Spain estimates that inflation would slow after 2023.
(Reporting by Jakub Olesiuk, Corentin Chappron, editing by Kate Entringer)
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