Post by account_disabled on Mar 10, 2024 22:26:31 GMT -5
Spanish inflation fell to 1.6 percent year-on-year in June, making it the first of the eurozone's major economies to record annual price increases below the European Central Bank's 2 percent target since the war. Ukraine. The inflation figure, measured on a harmonized EU basis, fell significantly from the 2.9 percent rise recorded in May, with slower increases in fuel, electricity and food and drink prices driving the change, said Spain's National Statistics Institute. Spain's government has positioned itself as a leader in the fight against inflation, arguing that its energy policies have helped mitigate the effect of high gas prices. It is the first time that Spanish general inflation falls below 2% since March. The 1.6 percent reading was higher than the 1.5 percent forecast by economists polled by Reuters.
Core inflation, which excludes volatile energy and fresh food prices, has remained consistently higher and was % in June, up from 6.1% in May. The Economy Ministry said the country was "the first major eurozone Russia Mobile Number List economy to reduce inflation below 2 percent" since Russia's large-scale invasion of Ukraine last year caused a surge in commodity prices. food and fuel. Annual inflation in Italy was 6.7 percent in June, compared with 8 percent in May. Germany and France will release consumer price figures later on Thursday and Friday, respectively. The figure comes as Spain's Socialist Prime Minister Pedro Sánchez fights for his political life in next month's snap general election. Sánchez has tried to take credit for Spain's relatively low inflation.
Government fuel subsidies and a policy that severed the link between domestic electricity prices and the price of gas elsewhere in Europe. Spain has always been in a stronger position than many of its peers, especially Germany, because it is not dependent on Russian natural gas and generates a significant proportion of its electricity from wind and solar power. But Sánchez's defeat in local and regional polls in May, the trigger for early elections, suggested that his economic message has not resonated with voters. Instead, discontent over Sánchez's political alliances, which has been stoked by the opposition Popular Party, overrode any perception that the prime minister had successfully steered the economy through a series of crises. BBVA economists said energy prices had contributed more to the slowdown in inflation than food, and noted that the effects of a prolonged drought in southern Spain this year were preventing food prices from slowing further.
Core inflation, which excludes volatile energy and fresh food prices, has remained consistently higher and was % in June, up from 6.1% in May. The Economy Ministry said the country was "the first major eurozone Russia Mobile Number List economy to reduce inflation below 2 percent" since Russia's large-scale invasion of Ukraine last year caused a surge in commodity prices. food and fuel. Annual inflation in Italy was 6.7 percent in June, compared with 8 percent in May. Germany and France will release consumer price figures later on Thursday and Friday, respectively. The figure comes as Spain's Socialist Prime Minister Pedro Sánchez fights for his political life in next month's snap general election. Sánchez has tried to take credit for Spain's relatively low inflation.
Government fuel subsidies and a policy that severed the link between domestic electricity prices and the price of gas elsewhere in Europe. Spain has always been in a stronger position than many of its peers, especially Germany, because it is not dependent on Russian natural gas and generates a significant proportion of its electricity from wind and solar power. But Sánchez's defeat in local and regional polls in May, the trigger for early elections, suggested that his economic message has not resonated with voters. Instead, discontent over Sánchez's political alliances, which has been stoked by the opposition Popular Party, overrode any perception that the prime minister had successfully steered the economy through a series of crises. BBVA economists said energy prices had contributed more to the slowdown in inflation than food, and noted that the effects of a prolonged drought in southern Spain this year were preventing food prices from slowing further.