Core inflation climbs further to 6.4%, the highest since 1993
In the month of August, prices moderated compared to July, but very slightly. The rate goes from 10.8%, the highest in 40 years, to 10.4%, still above two digits, according to data released this Tuesday by the INE. The slight drop in the CPI rate is due to the drop in fuel prices.
On the other hand, the main causes of this high inflation were energy and fresh food, in addition to restaurants and tourist packages, although all the products in the shopping basket are already skyrocketing.
This is demonstrated by the underlying inflation data, which stood at 6.4% in August, a rate that does not take into account energy products or fresh products. They are three tenths of the July rate, but still at levels not seen for decades. In fact, core inflation just a year ago was 0.7%.
The Government considers that inflation has already begun its path of “moderation” and explains in a statement that the peaks of inflation have been registered in the months of March, when Putin started the war, and June, when Russia reduced the supply of gas to Europe. “The slowdown in inflation coincides with the implementation of the Government’s packages of measures, which demonstrates the effectiveness of the measures adopted,” they say.
The economic vice president, Nadia Calviño, explained that “it is normal” that once the escalation of inflation begins due to the energy crisis and the problems in the supply chains, there is a “rise in the prices of all estate”. But in an interview on TVE she has predicted that this trend “has to stop in the coming months” and that we return to “more normal levels of inflation” next year.