Spain's July inflation rate reaches new 38-year high

AFP/The Local
AFP/The Local - [email protected]
Spain's July inflation rate reaches new 38-year high
Spain is battling an unprecedented surge in inflation. (Photo by GABRIEL BOUYS / AFP)

Inflation in Spain in July reached 10.8 percent, its highest level in 38 years, fuelled by runaway food and energy prices, official data showed on Friday.


Consumer prices rose by 10.8 percent on an annual basis this month, up from 10.2 percent in June and the fastest rate since September 1984, the national statistics institute INE said in a statement.

Like most of its European neighbours, Spain is battling an unprecedented surge in inflation as a result of the economic fallout from the war in Ukraine and the reopening of economies after coronavirus lockdowns.


Already on Tuesday, Economy Minister Nadia Calviño warned that inflation constituted "the main challenge for the Spanish economy."

The government -- which is expecting inflation to slow somewhat in the second half of the year but remain elevated -- has unveiled a series of measures to help households and businesses cope with the cost-of-living crisis, such as fuel subsidies and lower electricity taxes.

According to Socialist Prime Minister Pedro Sánchez, the measures amount to €30 billion ($31 billion), or 2.3 percent of Spain's GDP.

READ ALSO: How will rising interest rates affect my life in Spain?


Join the conversation in our comments section below. Share your own views and experience and if you have a question or suggestion for our journalists then email us at [email protected].
Please keep comments civil, constructive and on topic – and make sure to read our terms of use before getting involved.

Please log in to leave a comment.

See Also