# Spain August 12-month inflation slows to 10.4% YoY; oil gives a break
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-08-30
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Spanish inflation eases but remains high, uncertainty
Meta Description: Spanish consumer prices ease slightly amid high levels, impacted by lower fuel costs and higher power prices. Get the latest insights here.
URL: https://financedigest.com/spain-august-12-month-inflation-slows-to-10-4-yoy-oil-gives-a-breakhtml

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(Reuters) – Spanish domestic consumer prices have eased despite remaining high, mainly due to lower fuel prices against a rise in power prices, preliminary data from the National Statistics Institute (INE) showed on Tuesday.

The figure stood at 10.4% year-on-year in August, down from 10.8% the previous month. The reading was lower than the 10.9% forecast by analysts polled by Reuters.

[Core inflation](https://www.financedigest.com/boes-mann-falling-headline-inflation-high-core-make-policy-difficult.html "BoE’s Mann: Falling headline inflation, high core, make policy difficult"), which strips out volatile food and energy prices, was at 6.4% year-on-year, the highest since January 1993 and up from 6.1% a month earlier, the INE data showed.

We have to continue (acting) with enormous caution because the uncertainty is very high as a consequence of the [war at the gates of Europe”](https://www.financedigest.com/after-fleeing-war-ukrainians-struggle-to-settle-around-europe.html "After fleeing war, Ukrainians struggle to settle around Europe"), Economy minister Nadia Calvino told national broadcaster TVE on Tuesday.

Although inflation has softened, it remains high mainly due to massive electricity prices and [higher](https://www.financedigest.com/vhs-tapes-selling-for-46000-higher-than-original-price.html "VHS tapes selling for 46,000% higher than original price") prices of food, restaurants and package tours, INE said.

In an attempt to curb inflation Spain said last month it will send a [proposal to the European Union on limiting carbon emission](https://www.financedigest.com/euro-7-emissions-proposals-the-sequel-europes-carmakers-dont-want-to-see.html "Euro 7 emissions proposals, the sequel Europe’s carmakers don’t want to see") permit prices in a bid to reduce the energy prices and their effects on inflation.

Russia’s invasion of Ukraine and the subsequent pressure on energy and food [markets has stoked inflation](https://www.financedigest.com/hungarys-booming-wedding-market-doused-by-soaring-inflation.html "Hungary’s booming wedding market doused by soaring inflation"), which was already accelerating as the global economy emerged from the coronavirus pandemic.

Spanish European Union-harmonised prices rose 10.3% from a year earlier, down from 10.7% in July and in line with the forecast of analysts [polled by Reuters](https://www.financedigest.com/bank-of-england-to-raise-rates-by-50bps-again-to-tame-inflation-reuters-poll.html "Bank of England to raise rates by 50bps again to tame inflation: Reuters Poll").

(This story corrects EU-harmonized [data for July in line](https://www.financedigest.com/infinidat-announces-public-cloud-and-data-protection-product-lines.html "INFINIDAT Announces Public Cloud And Data Protection Product Lines") 28)

(Reporting by Mariana Ferreira Azevedo; Editing by Emma Pinedo, Belén Carreño and Frank Jack Daniel)


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