Spain Inflation Strongest Since 2023

(RTTNews) - Spain inflation hit the highest level in more than three years in July, largely reflecting higher energy prices, flash estimate from the statistical office INE revealed Friday.

Consumer price inflation rose more-than-expected to 4.3 percent from 3.6 percent in July. The rate was seen at 4.2 percent. The latest figure was the highest since February 2023, when inflation was 6.0 percent.

Likewise, EU harmonized inflation advanced to 4.5 percent from 3.9 percent but remained slightly below forecast of 4.6 percent.

Meanwhile, core inflation that excludes prices of unprocessed food and energy, softened to 2.9 percent from 3.0 percent.

Month-on-month, the consumer price index posted an increase of 0.7 percent, faster than the 0.3 percent rise in July and economists' forecast of 0.6 percent.

The harmonized index of consumer prices climbed 0.6 percent, in line with forecast, after staying flat in July.

Another data from INE showed that retail sales declined for the first time since November 2022. Retail sales dropped 0.3 percent from a year ago in July, reversing June's 0.6 percent rise. On a monthly basis, retail sales slid 0.9 percent after rising 0.3 percent in June.