What caused inflation in Spain to rise above market forecast this month

Inflation rose to 5.8% across Spain in January, much above the market forecast. 

The preliminary figure was up from 5.7% in December 2022, a 13-month low, as fuel price hikes accelerated in January.

Meanwhile, clothing, footwear and electricity prices decreased from a year ago.

The market estimate was at 4.9% year-on-year in January’s consumer prices.

On a monthly basis, Spain’s consumer price index (CPI) fell 0.3% in January, following a 0.2% rise last December.

A further cooling in energy inflation, on the other hand, put some downward pressure on the 5.8% figure. 

The removal of the state subsidy on fuel retail prices will also have exerted some downward pressure.

On the other hand, core inflation, excluding food and energy, rose further from 7% last month to 7.5% in January. 

Core inflation continues to rise worryingly strongly, showing that underlying price pressures in the economy are still very high. 


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