Spanish inflation ticks up as growth slows
Spanish inflation ticked upwards in July due to higher fuel prices while growth slowed in the second quarter, preliminary data showed Friday.
Consumer prices rose 2.3 percent year-on-year, figures from the National Statistics Institute (INE) showed, up from 1.9 percent in June when it fell below the 2.0 percent target set by the European Central Bank.
The increase in prices in July was due to a rebound in fuel prices, which had fallen in July 2022, as well as higher costs for package holidays, which offset falls in electricity and gas prices, INE said.
In a separate statement, INE said Spain's economic output rose by 0.4 percent in the second quarter, down from a revised 0.5 percent increase seen in the first three months of the year due in part to the poor performance of the country's drought-hit agriculture sector.
The latest economic figures come after Spain held an inconclusive snap election on Sunday that could result in a repeat election in the coming months.
Socialist Prime Minister Pedro Sánchez had repeatedly flagged the results of his economic policy to win voter support ahead of the elections in which his party finished second behind the conservative Popular Party.
READ ALSO: Sánchez named Spain's caretaker PM after inconclusive vote
He is trying to cobble together enough support among smaller parties to stay in power.
Sánchez's left-wing coalition government has implemented a series of measures to bring down inflation which hit a record 10.8 percent in July 2022, its highest level since 1985.
Under his watch the economy has outperformed most of its European Union peers, growing by 5.5 percent last year, and the government expects it will expand by 2.1 percent in 2023.
The International Monetary Fund (IMF) on Wednesday July 26th raised its growth forecast for Spain this year to 2.5 percent from 1.5 percent, citing the strong performance of the tourism sector.
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Consumer prices rose 2.3 percent year-on-year, figures from the National Statistics Institute (INE) showed, up from 1.9 percent in June when it fell below the 2.0 percent target set by the European Central Bank.
The increase in prices in July was due to a rebound in fuel prices, which had fallen in July 2022, as well as higher costs for package holidays, which offset falls in electricity and gas prices, INE said.
In a separate statement, INE said Spain's economic output rose by 0.4 percent in the second quarter, down from a revised 0.5 percent increase seen in the first three months of the year due in part to the poor performance of the country's drought-hit agriculture sector.
The latest economic figures come after Spain held an inconclusive snap election on Sunday that could result in a repeat election in the coming months.
Socialist Prime Minister Pedro Sánchez had repeatedly flagged the results of his economic policy to win voter support ahead of the elections in which his party finished second behind the conservative Popular Party.
READ ALSO: Sánchez named Spain's caretaker PM after inconclusive vote
He is trying to cobble together enough support among smaller parties to stay in power.
Sánchez's left-wing coalition government has implemented a series of measures to bring down inflation which hit a record 10.8 percent in July 2022, its highest level since 1985.
Under his watch the economy has outperformed most of its European Union peers, growing by 5.5 percent last year, and the government expects it will expand by 2.1 percent in 2023.
The International Monetary Fund (IMF) on Wednesday July 26th raised its growth forecast for Spain this year to 2.5 percent from 1.5 percent, citing the strong performance of the tourism sector.
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